Cryptocurrency focused on XRP payments
has jumped 12% in the past 24 hours, surpassing both bitcoin and ether (Eth). This two -digit gain increased the price of XRP to $ 3.32, its highest level since July 28.
The rise in prices was supported by sophisticated and anticipated exchanges of dripping options, involving a bullish bet on volatility. Block transactions are significant transactions executed over the counter and outside the public order book to minimize their impact on the market price in force of an asset.
The first exchange of blocks executed Thursday involved the simultaneous purchase of 100,000 expiration call contracts on August 29 and space -up options at the $ 3.20 strike. The merchant paid more than $ 416,000 in bonuses for the so-called Stradlen strategy, which benefits from wild oscillations in both directions. A large overlap has also been reserved for $ 3.10 strike.
The large non -directional flow points to the growing institutional interest for XRP, the deribit commercial chief in Asia, Lin Chen, told Coindesk.
“XRP has surpassed the BTC this year, and we are now seeing an increase in block transactions and institutional interest in XRP options. We have also launched end -of -year XRP options to respond to this request,” said Chen.
Traders use rides when they anticipate a major volatility event – such as a big report on profits, a key court decision or a significant launch of product – but are not sure if the impact would be optimistic or lower. The profile of reward of the risk of a long difference is defined by an unlimited profit potential and a limited risk.
By coincidence, Thursday, the Securities Exchange Commission and Ripple jointly agreed to drop their calls in the second case of a short circuit, ending an prolonged legal battle. Ripple uses XRP to facilitate cross -border transactions.
Limited loss, unlimited gain strategy
The maximum loss of long -term Straddles is capped at the total premium paid for both the call and the put.
The maximum benefit, however, is unlimited because the price can theoretically go up or lower indefinitely. To break even, the price must evolve in both directions in an amount equal to the total paid premium.
Options are derivative contracts designed to protect traders against optimistic or downward volatility. A purchase option provides coverage against upward trends in the underlying assets, while a sales option offers insurance against market swoons.
