XRP Options Open Interest Rockets to $98M as Volatility Spurs Yield Traders
In the past fortnight, derivatives traders have pumped the notional value of XRP options on Deribit up by 38%, from $71 million to around $98 million—just shy of the record high of $102.3 million seen this past June . This represents roughly 42,400 open contracts, each pegged to 1,000 XRP.
Key Drivers:
- High Implied Vol: XRP’s implied volatility is currently higher than that of bitcoin and ether, amplifying premium income and attracting traders focused on yield .
- Put-Writing Popularity: Yield hunters are notably active in selling cash-secured puts, capitalizing on rich vol to earn option premiums while hedging downside risk .
Market Pulse:
- Positive Risk Reversals: These signal a bias toward calls over puts, reflecting bullish trader sentiment .
- Volatility & Price Context: Elevated IV paired with XRP’s price testing higher ranges creates dual opportunities—for both directional plays and income generation.
Trade Setup to Watch:
- New Open Interest Highs: A surge past $102M could reinforce bullish sentiment and spark fresh momentum.
- Volatility Trends: Sustained vol keeps premium strategies viable; a drop could dampen interest among yield traders.
- Skew Evolution: A tightening of risk reversals toward neutrality may signal growing caution; continued call bias supports bullish narratives.
Investor Takeaway:
XRP’s derivatives market is heating up, with open interest surging and implied volatility at elevated levels. Yield-focused options strategies like cash-secured put writing are now in vogue, and risk reversals confirm a bullish tilt. Monitoring how vol and open interest evolve will be key in assessing whether this is the calm before the next surge—or a pause in a broader rally.