Duration Days Definition
Duration Days is a options data metric used in Bitcoin treasury analysis.OI‑weighted average days to expiration.
- What is Duration Days?
- OI‑weighted average days to expiration.
- Duration Days Definition
- OI‑weighted average days to expiration.
- Duration Days Meaning
- OI‑weighted average days to expiration.
- How to calculate Duration Days
- Weighted average of DTE using OI as weights.
- Why does Duration Days matter?
- Shows whether options flow is near‑dated or long‑dated.
- What does Duration Days mean?
- OI‑weighted average days to expiration.
- Duration Days explained
- OI‑weighted average days to expiration.
- Duration Days formula
- Weighted average of DTE using OI as weights.
Duration Days
OI‑weighted average days to expiration.
What the term means
Duration Days is the open-interest-weighted average time to expiration across every outstanding option (calls and puts) on the stock. Formally:
Σ(Open Interesti × Days to Expirationi) ÷ Σ(Open Interesti)
The result is a single number (for example, 18.3 days or 42.8 days) that shows where the bulk of option positioning sits in time. We refresh it daily from the full options chain.
Why the term matters for Bitcoin treasury companies
Gamma intensity clock
Low Duration Days (sub-25) means most open interest lives in weeklies and near-term monthlies—where gamma is largest. Dealers must hedge daily, producing violent, self-reinforcing moves. Duration below 20 often precedes 30–100% weekly swings on modest BTC strength.
Squeeze probability gauge
Pair collapsing Duration Days with spiking Call Open Interest and you have the classic gamma-squeeze setup. Dealers short near-term gamma have no runway to adjust; any upside forces frantic share buying.
Volatility regime signal
Duration compresses when DVOL spikes and traders chase leverage. A drop from ~45 to the teens almost always foreshadows elevated realized volatility and treasury outperformance. Rising Duration toward 60–70 indicates complacency and leaking premiums.
Capital-raising timing tool
Management watches Duration Days before launching BTC buys or ATMs. Low and falling readings guarantee near-term gamma support, keeping dilution low. High Duration means long-dated holders can wait the announcement out, muting the effect.
Retail flow magnet
Weeklies attract retail. Duration in the low teens signals meme-stock energy: social chatter spikes, call buying explodes, and treasury names become short-term casinos. Higher readings skew positioning toward institutions and calmer flows.
Gamma unwind risk
After expiration, Duration can jump from ~12 to 40+ overnight. That “gamma cliff” often triggers sharp reversals as hedges unwind. Monitoring the post-OPEX reset prevents getting trapped after a squeeze.
Tiering indicator
Only the largest treasuries sustain Duration below 30 because they support liquid weekly chains. Smaller names rarely dip below 50—their options markets are too thin for true gamma fireworks.
Bottom line
Duration Days is the options market’s heartbeat. Falling below 25 means “strap in”—expect high-octane gamma moves. Climbing above 60 signals sleepy price action. Track it alongside Call OI to gauge when the stock is primed for explosive action versus slow grind.
How BitcoinQuant incorporates it
We recompute Duration Days from the full options chain each morning—Weighted average of DTE using OI as weights. Dashboards chart the trend, fire alerts when readings drop into high-gamma zones (<25), and pair the metric with Call OI so traders can spot squeeze setups early.