PowerTrade’s Altcoin Options Market Sees Increased Activity as Volatility Spurs Hedge and Speculative Trades
As market volatility continues to escalate, traders are flocking to altcoin options on PowerTrade’s platform to hedge risks and capitalize on potential short-term price movements.
XRP options have seen a massive surge in trading volume, surpassing $5 million this week. The majority of these trades are concentrated in short-dated expirations, with a near equal distribution between put options with strike prices ranging from $1.80 to $1.98, and call options priced between $1.80 and $1.93.
“This balanced flow of trades suggests that market participants are preparing for significant short-term price action, potentially driven by regulatory developments or a breakout scenario,” explained Bernd Sischka, Head of Institutional Sales at PowerTrade, in a discussion with CoinDesk.
This surge in options trading aligns with XRP’s volatile price action. Earlier this week, XRP fell to a five-month low of $1.61 before making a strong recovery to $2. As usual, call options are being used by traders who are optimistic about price increases, while put options reflect a bearish stance or hedging strategy.
Solana (SOL) also saw increased hedging activity in its options market, particularly in put options with strikes between $104 and $121. SOL briefly dipped to $95 on Monday amidst broader risk aversion caused by global economic tensions, particularly the U.S.-China trade situation. However, the asset quickly recovered, trading at $115 by the end of the week.
In contrast to the broader market concerns, Dogecoin (DOGE) has seen a surge in speculative interest. The meme coin briefly touched 13 cents earlier this week but has since risen to 15.7 cents. Despite being down over 65% from its December high of 48 cents, traders are still eyeing potential upside.
The most active Dogecoin options are call options, with strikes at 14.5, 15.5, 17.5, and 18 cents, all expiring on April 13. These high-volume, short-dated options suggest a focus on speculative momentum trades, likely spurred by social media trends or other event-driven catalysts.
“The increase in short-term, low-premium bets reflects a strong momentum-driven approach, with traders betting on fast price movements,” Sischka noted. “This activity in short-dated expirations is putting altcoin options in the spotlight as traders look for quick gains.”
While altcoin options are becoming increasingly popular, they remain a small segment compared to the dominant bitcoin and ether options markets, which continue to see billions of dollars in contracts traded daily, particularly on leading platforms like Deribit.
