Traders Turn to Straddles as XRP Soars 12% on Volatility Expectations

XRP Jumps 12% as Options Traders Bet Big on Volatility With Long Straddle Strategy

XRP surged 12% over the past 24 hours, climbing to $3.32 and outperforming both bitcoin (BTC) and ether (ETH). The move marks the token’s strongest performance since July 28, fueled in part by a rise in institutional options activity betting on heightened volatility.

Data from Deribit shows significant block trades targeting XRP options—particularly through the long straddle strategy, where investors simultaneously purchase call and put options at the same strike price and expiry. These trades are designed to profit from sharp moves in either direction, regardless of whether the token rallies or declines.

One of Thursday’s standout trades involved the purchase of 100,000 contracts of $3.20-strike call and put options expiring August 29. The trader spent over $416,000 in premiums, reflecting a sizable bet on increased price swings. A similar position was also opened at the $3.10 level.

According to Lin Chen, Head of Asia at Deribit, the flow signals rising institutional interest in XRP derivatives:
“XRP has consistently outperformed BTC this year. We’re now seeing strong demand for block trades and volatility exposure. We’ve even launched year-end XRP options to meet this growing interest,” he told CoinDesk.

Long straddles are often used ahead of major market events when direction is unclear but volatility is expected. The strategy caps downside at the total premium paid but offers unlimited upside if the asset moves sharply.

The rise in XRP options activity coincides with a legal development: Ripple and the U.S. Securities and Exchange Commission have agreed to dismiss their respective appeals in the long-running case over XRP’s classification—removing a key overhang on the asset.

With legal uncertainty easing and institutional traders positioning for volatility, XRP’s recent move may be the start of broader market activity heading into the second half of August.