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XRP options trader buys 2 million straddle contracts at $1.16
The long straddle expires Aug. 28 and targets a move large enough for XRP to break away from the $1.16 strike after a sharp rally.
CoinDesk reports an options trader opened a large long straddle on XRP, placing bets on higher volatility and a significant price move away from a key strike level. The trade was structured as simultaneous call and put purchases at the $1.16 strike.
According to CoinDesk, the trader bought 2 million contracts for roughly $62,000 in premium, according to derivatives analytics firm Laevitas. The position expires on Aug. 28, making it a short-term wager on directionless but bigger-than-expected movement.
Laevitas data cited by CoinDesk showed the activity on Deribit, including a spike in open interest and buy volume at the $1.16 strike. A long straddle is expected to profit if the underlying moves far enough from the strike to offset the premium, regardless of whether the move is up or down.
CoinDesk said XRP jumped nearly 15% to $1.34 on Thursday before settling around $1.26. With eight days left until expiration at the time of the report, the payoff depends on how far XRP travels by Aug. 28.
Latest closeXRP $1.319 ▲19.4%