XRP Explodes 12% as Traders Deploy High-Stakes ’Straddle’ Bets for Volatility Windfall

XRP just rocketed into double-digit gains—and traders are piling into complex derivatives to capitalize on the frenzy.

Straddle strategy in play: With a 12% surge sparking market chaos, speculators are betting big on wild price swings ahead. No one’s hedging—just pure, unadulterated volatility gambling.

Wall Street’s playbook, crypto’s execution: Options traders mimic institutional tactics while pretending they invented leverage. Meanwhile, the SEC watches from the sidelines, clutching its rulebook like a forgotten prop.

Buckle up: This isn’t a rally—it’s a liquidity rodeo. And as always, the house wins whether XRP moons or crashes.

Traders use straddles when anticipating a major volatility event – such as a big earnings report, a key court ruling, or a significant product launch – but are uncertain whether the impact WOULD be bullish or bearish. The risk-reward profile of a long straddle is defined by unlimited profit potential and limited risk.

Coincidentally, on Thursday, the Securities Exchange Commission and Ripple jointly agreed to drop their appeals in the Second Circuit court case, bringing to an end to a prolonged legal tussle. Ripple uses XRP in faciliating cross-border transactions.

Limited loss, unlimited gain strategy

The maximum loss in long straddles is capped at the total premium paid for both the call and the put.

The maximum profit, however, is unlimited as the price can theoretically MOVE up or down indefinitely. To break even, the price must move in either direction by an amount equal to the total premium paid.

Options are derivative contracts designed to protect traders from bullish or bearish volatility. A call option provides cover against uptrends in the underlying asset, while a put option offers insurance against market swoons.