SOL Meltdown and Impending Token Unlock Spark Whale Engagement in Bearish Options Plays on Deribit
The post SOL Meltdown and Impending Token Unlock Spark Whale Engagement in Bearish Options Plays on Deribit appeared on BitcoinEthereumNews.com.
Deribit’s options market for Solana’s SOL token has become active, with whales engaging in bearish bets as the token’s price continues to decline ahead of an impending multi-billion dollar unlock. Last week, SOL block trades totaling $32.39 million in notional value crossed the tape on Deribit, representing nearly 25% of the total options activity of $130.74 million. The remainder of the activity comprised screen trades, according to Amberdata. That’s the second-highest proportion of block trades to total activity on record. A “block trade” in options refers to a significant, privately negotiated options transaction between two parties involving a large number of contracts. Such trades, typically associated with whale activity, are executed over-the-counter and outside the regular order book and then booked on the exchange, allowing for a minimal impact on the market prices. Options are derivative contracts that give the purchaser the right but not the obligation to buy or sell the underlying asset, in this case, SOL, at a preset price on or before a specific date. A call option gives the right to buy, while a put option provides the right to sell. On Deribit, which accounts for over 85% of the global crypto options activity, one options contract represents 1 SOL. Last week’s spike in SOL block trades featured a preference for put options, which traders use to hedge against or profit from a potential price slide. “Nearly 80% of the block-trade volume was concentrated in put contracts. Compared to only 40% puts for BTC and 37.5% puts for ETH during the same timeframe,” Greg Magadini, director of derivatives at Amberdata, said. SOL options: Weekly volume in block trades and screen trades. (Amberdata/Deribit) The whale demand for put options comes as SOL’s outlook appears grim following the 46% price slide to $160 in just over five weeks.…
Filed under: News - @ February 24, 2025 6:24 am