A large SOL options block trade crossed the band on Deribit via the OTC Paradigm network Monday evening, suggesting expectations of a price rally to $400 by the end of February.
The trade, structured as a bull call spread, involved a long position in the $280 call and a simultaneous short position in the $400 call, with 10,000 contracts for each leg and both legs set to expire on February 28, according to tracked block flows. by Amberdata. Block trading, considered an indicator of institutional activity, is consistent with expectations of SOL’s outperformance under Donald Trump’s presidency.
A bull call spread reaches its maximum profit when the price of the underlying asset is equal to or greater than the strike price of the short call, which is $400 in this case, meaning the buyer s ‘expects a 55% price increase from the current market rate of $257 in just over a year. a month. The buyer is betting that the spread will exceed $280, reaching $400 with a breakeven point around $300, according to Amberdata’s director of derivatives, Greg Magadini.
