Key Takeaways:XRP surged 12% in 24 hours, outperforming Bitcoin and Ethereum.Deribit data shows institutional traders opening large “long straddle” options positions at $3.10 and $3.20 strike prices.The long straddle strategy signals a bullish bet on volatility, with traders expecting major price swings.SEC and Ripple filed to dismiss their appeals in court, ending a years-long legal battle — a potential catalyst for volatility.XRP Climbs to $3.32 as Institutional Options Traders Bet on VolatilityXRP rose 12% over the past 24 hours to reach $3.32 — its highest price since July 28 — significantly outperforming Bitcoin (BTC) and Ethereum (ETH). The rally appears tied to a wave of sophisticated options trading activity on Deribit, including large long straddle positions placed by institutional traders.According to Deribit data, a trader executed a major block trade involving 100,000 contracts of both call and put options at the $3.20 strike price, with expiry on August 29. The strategy, known as a long straddle, involves buying both calls and puts to bet on sharp price movement in either direction. A similar straddle was placed at the $3.10 strike.The total premium paid for the $3.20 straddle exceeded $416,000, representing a bullish bet on future volatility, regardless of direction.“XRP has outperformed BTC this year, and we are now seeing a surge in block trades and institutional interest in XRP options,” said Lin Chen, Deribit’s Head of Asia Business. “We’ve also launched year-end XRP options to meet growing demand.”Legal Breakthrough Fuels Market SpeculationThe options activity coincided with news that the U.S. Securities and Exchange Commission (SEC) and Ripple have agreed to dismiss their appeals in the Second Circuit court. While the case still requires district court closure, the move signals the nearing end of a legal battle that began in 2020 — a development that could significantly impact XRP’s market narrative.Ripple uses XRP to facilitate global cross-border payments, and clarity around its legal status could pave the way for broader adoption and institutional interest.What Is a Long Straddle in Options Trading?A long straddle is a non-directional options strategy in which traders simultaneously buy a call and a put option at the same strike price and expiration date. It’s commonly used when a major volatility event is expected — such as a court ruling or regulatory shift — but the direction of the move is uncertain.Maximum Loss: Limited to the total premium paid for both options.Maximum Profit: Unlimited, as large price swings in either direction increase returns.Breakeven Point: The underlying asset must move above or below the strike by the amount of the combined premium to be profitable.The strategy’s rising use on XRP suggests growing institutional appetite for volatility plays, likely driven by regulatory catalysts and renewed retail momentum.
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