CoinDesk
Derivatives analytics firm Laevitas identified a 2 million-contract XRP long straddle at the $1.16 strike, with the position valued at $2.32 million and about $62,000 paid in premium. The contracts expire on Aug. 28, leaving roughly eight days at the time of the trade. Buying the call and put together gives the trader exposure to a large XRP move in either direction, rather than a straightforward directional position.
Why it matters
XRP jumped nearly 15% to $1.34 on Thursday before settling around $1.26, while trading volumes rose sharply. The trade arrived during that surge, making it a direct expression of expected volatility after a fast move, not evidence that the trader has chosen a direction for XRP.
Earlier in the quarter, traders had leaned toward short straddles to collect premium while betting on range-bound market activity. A long straddle takes the opposite volatility stance: the buyer pays upfront for movement and accepts the premium as the cost if a sufficiently large move does not arrive. Deribit charts also showed a clear spike in open interest and buy volume at the $1.16 strike.
Market impact
The $1.16 strike is the reference point for the trade. A rally would increase the value of the call, while a sharp decline would increase the value of the put. XRP must move far enough from that level before expiry for the position to cover the roughly $62,000 premium. If it stays near the strike, time decay erodes both options and the premium can be lost.
That makes Aug. 28 the key checkpoint. The outcome will depend on XRP's distance from $1.16, the speed of the move and whether the recent increase in volume develops into sustained volatility. The position offers a concentrated read on near-term XRP risk, but it does not establish a broader market view.
Frequently asked questions
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What does the XRP long straddle require before Aug. 28?
It requires XRP to move far enough away from the $1.16 strike for the call or put to offset the roughly $62,000 premium. The trade can benefit from a large move in either direction.
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What happens if XRP stays near the $1.16 strike?
Time decay would erode the value of both options as expiry approaches, putting the roughly $62,000 premium at risk.
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Why was the trade notable after XRP's rally?
XRP jumped nearly 15% to $1.34 before settling around $1.26, while trading volumes rose sharply. The straddle therefore arrived during heightened market activity.
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How does a long straddle differ from a short straddle?
A long straddle buys a call and a put and pays premium for a large move. A short straddle collects premium when the underlying remains range-bound.
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What will determine whether the position pays off?
The key factors are XRP's distance from $1.16, the speed of any move, and whether the move occurs before the Aug. 28 expiry.
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