Deribit Exchange Sees $4 Million XRP Block Trade as Large Holder Executes Covered Call Strategy
A million XRP call options at the $4 strike price changed hands Monday in a single block trade on Deribit, representing $4 million in notional exposure. The December-expiring contracts traded despite XRP's 12% monthly decline.
Market participants indicate the activity reflects a covered call strategy rather than outright bullish speculation. "This appears to be a large holder monetizing spot positions," stated Deribit's Lin Chen. The trade likely involved selling upside calls against existing XRP holdings to generate yield.
The $4 strike sits 300% above XRP's current $0.48 price, making these DEEP out-of-the-money contracts attractive for option writers. Market makers are presumed to have absorbed the flow, maintaining neutral exposure while providing liquidity.
