XRP Options Frenzy: $100M Open Interest as Volatility Lures Yield Chasers
XRP's options market is heating up—fast. With open interest flirting with the $100 million mark, traders are piling in to capitalize on the token's wild price swings.
High volatility, higher stakes
The surge reflects a broader trend of crypto investors chasing yield in derivatives markets. XRP’s recent price turbulence—whether fueled by regulatory drama or speculative frenzy—has turned its options into a prime hunting ground for risk-tolerant players.
Wall Street’s playbook, crypto’s playground
Options volumes are exploding as traders employ strategies straight from traditional finance’s playbook. The difference? In crypto, 24/7 markets and retail participation amplify both opportunities and risks. (And let’s be honest—the SEC’s ongoing scrutiny adds a free ‘thrill ride’ bonus.)
One thing’s clear: when volatility talks, yield hunters listen—even if their risk management sometimes takes a coffee break.
Risk reversals are skewed bullish
As of the time of writing, the 25-delta risk reversals were positive, indicating a bias toward call options, or bullish bets, according to data tracked by Amberdata.
The 25-delta risk reversal is a strategy that comprises a long put position and a short call option (or vice versa) with a 25% delta, meaning both options are relatively far from the underlying asset's current market price.
The pricing for risk reversals across tenors helps identify market sentiment, with positive values representing a relative richness of calls and negative values indicating a downside bias. At press time, short-term XRP risk reversals and those tied to August and September expiries were positive.
Furthermore, more than 30 million calls were open, outstripping 11.92 million puts, giving a put-call ratio of 0.39, also a sign of bullish sentiment in the market.
: Parts of this article were generated with the assistance from AI tools and reviewed by our editorial team to ensure accuracy and adherence to our standards. For more information, see CoinDesk's full AI Policy.