Huge 1M-Contract Block Trade in $4 XRP Calls Sparks Interest as Prices Slip
A block trade for one million contracts of the $4 call option on XRP, expiring Dec. 26, was executed on Monday, drawing attention amid a recent price pullback. On Deribit, where contracts represent 1,000 XRP each, that trade size equates to a very large position and was recorded as an over-the-counter block once listed on the exchange. The $4 strike is well above current spot levels, so the trade does not necessarily reflect outright bullish betting.
Market observers said the transaction appears consistent with a covered-call approach: a large holder writing out-of-the-money calls against an existing XRP spot position to collect premium income while capping upside. Market makers likely absorbed the contracts to provide liquidity, rather than a directional buyer taking a pure long-options bet. Deribit’s regional team and derivatives trackers suggested a big holder was probably implementing yield-enhancing option sales rather than speculating on a major rally.
XRP’s spot price dipped to about $2.94 on Monday before settling just above $3, following broader market weakness. Traders have increasingly used covered-call strategies across crypto, which has coincided with lower implied volatility in several markets over the past year. The trade highlights how derivatives activity can offer insight into sophisticated holders’ risk-management tactics, even when headline sizes imply bullishness at first glance.
