Floor, the native cryptocurrency of Solana’s programmable blockchain has organized a four -week net rally, increasing by 85% since April 7 – more of the rhythm of Bitcoin (BTC) – and merchants of important options are positioned for other gains.
The token has climbed to around $ 176 in recent days while the crypto and traditional markets have adopted a greater degree of risk. Bitcoin, the main cryptocurrency by market value, has climbed 40%, according to Coindesk data.
It is unlikely that the gains will invert in the near future, if block traders – mainly institutions and market players who perform large trading orders at the counter and outside the public order book – are correct. They broke the $ 200 expiration purchase option on the list of derments on June 27 in large numbers, a sign that they expect the price to exceed this level before the end of the first half.
“Traders also exposed $ 200 in June last week. It was the biggest trade in blocks, trading contracts of 50,000x in total for $ 263,000 as a bonus,” said Greg Magadini, Director of Amberdata derivatives, in an email. On Deribit, an option contract represents a soil.
A purchase option gives the buyer the right, but not the obligation, to buy the underlying assets at a predetermined price on a later date. A call buyer is implicitly optimistic on the market. It is like buying a lottery ticket, where the holder has the possibility of making important gains if they win, while risking only the initial amount paid for the purchase of the ticket.
Magadini added that these appeal options had been recovered from an implicit virtualized annualized (IV) of 84%. In other words, traders have perfectly timed it, slamming calls when they were cheap, because IV of soil generally hovers with three figures.
The data show that the request for the purchase option of $ 200 has left merchants or dealers with a significant negative gamma exposure to the exercise price.
Market manufacturers with exposure to the negative gamma net generally buy as prices are increasing and selling during the decreases, aimed at rebalance their portfolios to a neutral or neutral position of the Delta or on the market. Their coverage activities often amplify market oscillations.
It is therefore likely that volatility will resume because Sol potentially crosses the $ 200 mark.
