A large options bet that would pay off from a surge in $XRP ($XRP) volatility crossed the tape Thursday, just as the cryptocurrency staged one of its sharpest single-day rallies of the summer.
The trade was a “long straddle,” involving the simultaneous purchase of call and put contracts at the $1.16 strike level, according to derivatives analytics firm Laevitas. The trader purchased 2 million contracts in total, worth $2.32 million, while paying roughly $62,000 in premium. The position expires on August 28.
“2M $XRP long straddle opened at the 1.16 strike for 28AUG26, $62k premium,” Laevitas reported. Charts showed a clear spike in open interest and buy volume at that strike on crypto exchange Deribit.
A long straddle is a classic volatility play. The buyer profits if the price moves far enough from the strike to cover the premium, regardless of direction. With only eight days left until expiration, this is a short-term bet that $XRP will not stay near $1.16.
The timing looked solid. $XRP jumped nearly 15% to $1.34 Thursday before settling around $1.26 as of this writing. Trading volumes also rose sharply.
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