The value in dollars locked in open XRP options listed on Deribit quickly increases to a record, because the high implicit volatility of the token attracts yield hunters.
The so-called open notional interest (OI) Competed at nearly $ 98 million, compared to $ 71 million since the quarterly expiration of June 27, a solid increase of 38% in two weeks. He now approaches the June 24 record of $ 102.3 million, according to the metrics of the data source. In terms of contract, the OC increased by 26% to 42,414. (The contract multiplier for XRP on Deribit is 1,000 XRP).
Behind this increase is the implicit volatility of the token, a measurement of the expected price oscillations over a specific period. XRP is higher than Bitcoin
Ether and Solana, according to Lin Chen, responsible for the commercial development of Asia de Deribit.
“XRP has delivered an annual return of more than 300% in the last 12 months,” Chen to Coindesk told CHEND. “Its options have also gained popularity, reflected in the greatest implicit volatility among the main tokens – indicating a strong demand from investors.”
The merchants perform gains is to sell cash outlets, said Chen. Writing an option to sell – Accept to buy the assets at a fixed price – is similar to the sale of insurance against price reductions in exchange for a premium, which represents the seller’s yield.
Traders generally write options against assets on the cash market or in a “guaranteed” manner in cash when implicit volatility is high. The higher the volatility, the more expensive the options and vice versa. The guaranteed version consists in holding enough stablescoins to ensure that the underlying assets can be purchased if the slide price and the power buyer decides to exercise his right to sell the asset at the predetermined price.
Risk reversals are biased optimistic
At the time of writing the writing time, the risk inversions 25-Delta were positive, indicating a bias towards the purchase options or the bruise bets, according to data followed by Amberdata.
Risk reversal at 25 Delta is a strategy that includes a long put position and a short -term call option (or vice versa) With a 25%delta, which means that the two options are relatively far from the current market of the underlying assets.
The price of risk inversions through tenors helps to identify the feeling of the market, with positive values representing a relative wealth of calls and negative values indicating a downward bias. At the time of the press, the inversions of short -term XRP risks and those linked to the August and September expirations were positive.
In addition, more than 30 million calls have been opened, exceeding 11.92 million puts, giving an appeal ratio of 0.39, also a sign of bullish feeling on the market.
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