Trader Places $2.3 Million Bet on XRP Volatility Ahead of August Expiry

A large options trade targeting XRP volatility surfaced Thursday, coinciding with one of the token’s strongest single-day rallies of the summer. The position, known as a long straddle, involved buying both call and put contracts at the $1.16 strike price, according to derivatives analytics firm Laevitas.

Details of the Trade

The trader purchased 2 million contracts worth roughly $2.32 million, paying about $62,000 in premium. The position expires on August 28. Data from crypto exchange Deribit showed a sharp rise in open interest and buying activity at that strike level.

Why the Timing Stood Out

A long straddle profits when an asset moves sharply in either direction, enough to offset the premium paid. XRP jumped nearly 15% to $1.34 on Thursday before easing back to around $1.26, with trading volumes climbing sharply as well.

The move marks a shift from earlier this quarter, when traders favored short straddles to collect premiums during calmer, range-bound trading conditions. Whether this bet pays off depends on how far XRP moves before expiration on August 28.