XRP Soars 12% as Traders Bet Big on Volatility With Options Strategy
XRP has surged 12% over the past 24 hours, climbing to $3.32 and outperforming both bitcoin and ether in a notable show of strength. This marks the token’s highest price since July 28.
Fueling the rally are large block option trades on Deribit, signaling institutional bets on heightened volatility. On Thursday, a trader executed a long straddle strategy by simultaneously purchasing 100,000 contracts of Aug. 29 expiry call and put options at the $3.20 strike, paying over $416,000 in total premiums. A similar trade was placed at the $3.10 strike.
A long straddle is a non-directional volatility play that profits from large price swings in either direction. The strategy offers unlimited upside with risk limited to the combined premium paid.
“This increase in block trades shows growing institutional appetite for XRP options,” said Lin Chen, Asia Business Head at Deribit. “XRP has outperformed BTC this year, and we’ve launched year-end XRP options in response to rising demand.”
The timing coincides with a key legal development: Ripple and the U.S. SEC agreed to withdraw their respective appeals, ending a long-standing court battle. Ripple leverages XRP for cross-border payments.
The long straddle strategy is commonly used when traders expect a major volatility event but lack a clear directional bias. In this setup, the trader profits if XRP moves sharply up or down—by more than the total premium paid.
Options like these provide traders with downside or upside protection: call options hedge against rallies, while puts guard against declines.
