Key Takeaways:
An options trader paid $62,000 for a $2.32 million long straddle on XRP at the $1.16 strike, expiring Aug. 28, as the token rose 15% to $1.34.
Derivatives analytics firm Laevitas flagged the trade on X, showing a spike in open interest and buy volume at the $1.16 strike on Deribit. "2M XRP long straddle opened at the 1.16 strike for 28AUG26, $62k premium," Laevitas reported.
A long straddle involves buying both a call and a put at the same strike. The buyer profits if the price moves far enough from the strike to cover the premium, regardless of direction. With eight days to expiration, this is a short-term wager that XRP will not stay near $1.16. XRP settled around $1.26 as of this writing, with trading volumes rising sharply. The move marks a shift from earlier this quarter, when traders leaned into short straddles to collect premiums while betting on range-bound activity.
Whether the trade pays off depends on how far XRP travels by Aug. 28. The token's 30-day volatility had fallen to a four-year low of 30 percent annualized before the breakout, and futures open interest rose 26 percent to $461 million, leaving short sellers exposed to a squeeze. The rally followed a White House push for Congress to pass the CLARITY Act, which would split digital-asset oversight between the SEC and CFTC, and an expanded Treasury debt-buyback program that injected liquidity into money markets.
XRP's breakout ended weeks of unusually quiet trading near $1.00, where 30-day volatility had compressed to its lowest level in four years. The policy-driven move forced short positions to adjust quickly as spot bids picked up.
The $1.16 strike sits just below the daily pivot, with resistance at $1.23 and the 200-day EMA at $1.34. A close above $1.34 would mark a structural shift; a slip below $1.12 would signal the bounce is losing fuel.
Ripple added an institutional signal on Aug. 18, when its Ripple Prime unit closed an upsized $275 million senior-note placement rated BBB by KBRA. Spot XRP ETFs recorded $5.81 million in net inflows on Aug. 18, bringing cumulative inflows to $1.52 billion.
Options are derivative contracts that provide insurance against price volatility. A put covers price declines; a call provides upside exposure. Buying both is like buying insurance against a big move in either direction. If the market stays flat, both lose value and the trader loses the $62,000 premium.
This article is for informational purposes only and does not constitute investment advice.
