XRP Call Options Reach $3.84 Million Open Interest on Deribit

XRP peaked at $3.40 in January but has declined 30% to $2.40.

The $5 call option on Deribit is the most popular, with a notional open interest of $3.84 million, indicating significant interest among traders. This does not imply strong bullish sentiment.

• Most positions are covered calls, according to Lin Chen from Deribit.
• This strategy involves selling higher-level out-of-the-money calls while holding XRP.
• It allows traders to earn premiums and limit losses during price fluctuations.

The covered call strategy is common in both crypto and traditional markets.