XRP Options See $100M Open Interest as Volatility Soars

XRP options have seen a sharp rise in open interest on the Deribit exchange, nearing a record $100 million as traders rush to capitalize on the token’s high volatility. The surge highlights strong investor interest in derivatives tied to Ripple’s native cryptocurrency.

According to Deribit Metrics, the notional open interest—or the total value of active contracts—has climbed from $71 million to approximately $98 million since the June 27 options expiry. This 38% increase over just two weeks puts current figures just shy of the June 24 all-time high of $102.3 million. When measured in contracts, open interest grew by 26% to reach 42,414, with each contract representing 1,000 XRP tokens.

This notable upswing is being driven by XRP’s implied volatility, or the expected magnitude of future price movements. Compared to other major cryptocurrencies like Bitcoin (BTC), Ethereum (ETH), and Solana (SOL), XRP exhibits greater expected volatility. Lin Chen, Head of Asia Business Development at Deribit, pointed out that “XRP has delivered an annual return of over 300% over the past year,” and added that its options market reflects robust demand due to high implied volatility.

An increasingly popular trading strategy among market participants is selling cash-secured puts. This approach involves writing put options—agreements to purchase XRP at a specific price—while holding enough stablecoins to cover the cost if the price drops and the buyer exercises the option. Selling such put options allows traders to collect premiums, effectively earning yield while positioning for potential downside.

Options premiums tend to rise with increased implied volatility, making the strategy more profitable during turbulent market conditions. Traders often employ this method against either spot market holdings or by securing their positions with stablecoins to guard against adverse price movements.

Positive Risk Reversals Signal Market Confidence

At the time of writing, data from Amberdata showed that the 25-delta risk reversals for XRP were in positive territory. This means that the price of call options is generally richer than that of puts, a signal that market participants lean toward bullish expectations.

The 25-delta risk reversal involves taking opposite positions in puts and calls that are far from the asset’s current price, generally with a 25% delta. When the value of the risk reversal is positive, it indicates stronger demand for call options—a pattern that suggests growing optimism about XRP’s future price trajectory. As of now, risk reversals across various expiries, including short-term, August, and September maturities, point to consistent upward bias.

Furthermore, open interest statistics reveal additional bullish sentiment. Over 30 million call contracts remain active compared to just 11.92 million put contracts, amounting to a put-call ratio of 0.39. Lower ratios, especially those under 1, often indicate that more traders are betting on rising prices than on declines.

As options market activity around XRP continues to climb, the token’s elevated volatility is drawing in both speculative and income-seeking investors. Whether through selling options or using strategic risk reversals, traders are engaging XRP’s robust derivatives landscape in search of gains amid a highly dynamic crypto market.

Related: XRP Price: $12M Max Pain for Bears

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