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An options trader has opened a large XRP position designed to profit from a sharp price move in either direction before August 28. The trade covered 2 million XRP in options exposure, with a notional value of about $2.32 million, while the trader paid roughly $62,000 in premium.
The position appeared as XRP recorded one of its strongest daily gains of the summer. The token jumped nearly 15% to $1.34 on Thursday before easing to around $1.26 later in the session.
Trader Opens XRP Long Straddle
Derivatives analytics firm Laevitas identified the transaction as a long straddle at the $1.16 strike price. The strategy involves buying call and put options with the same strike and expiration date, allowing the position to benefit if XRP moves far enough above or below that level. Laevitas said:
“2M XRP long straddle opened at the 1.16 strike for 28AUG26, $62k premium.”
Data accompanying the post showed increased open interest and buying activity at the strike on crypto derivatives exchange Deribit.
Position Bets on Larger XRP Price Moves
A long straddle is primarily a volatility trade rather than a directional bet. The trader does not need XRP to rise specifically, but the price must move sufficiently away from $1.16 before expiration for gains on one side of the position to offset the premium paid.
If XRP remains close to the strike, both options could lose value as the August 28 expiration approaches. The approximately $62,000 premium represents the upfront cost of establishing the position.
Trade Follows Sharp XRP Rally
The transaction comes after traders earlier in the quarter favored short straddles, which seek to profit when prices remain relatively stable. The new position instead reflects a wager that short-term XRP volatility will increase.
XRP trading volume also increased during Thursday’s rally. Whether the position becomes profitable at expiration will depend on XRP moving far enough from the $1.16 strike to overcome the roughly $62,000 premium paid.
