Activity in PowerTrade’s options market for alternative cryptocurrencies (altcoins) has accelerated this week as increased market volatility prompts traders to explore derivatives for both hedging and speculative opportunities.
Trading volume in XRP options has surged past $5 million this week, with a majority of activity concentrated in short-dated expirations, according to data released by PowerTrade. The trading flows reveal a near balance between put options at strikes ranging from $1.80 to $1.98 and calls at $1.80 to $1.93.
“This activity suggests that traders are positioning for significant short-term price movements—potentially driven by regulatory developments or breakout patterns—with an almost even distribution between bullish and bearish positions,” explained Bernd Sischka, head of institutional sales at PowerTrade, in a statement to CoinDesk.
The balanced flow aligns with the observed fluctuations in the market, as XRP dipped to a five-month low of $1.61 early in the week before bouncing back to $2, as reported by CoinDesk. A call option grants the purchaser the right, but not the obligation, to acquire the underlying asset at a predetermined price on or before a specific date. Consequently, a call buyer exhibits an implicit bullish stance, whereas a put buyer remains bearish, seeking to profit from or hedge against price declines.
Similarly, the market witnessed hedging activity in SOL options, with traders pursuing puts at strikes ranging from $104 to $121. The programmable blockchain Solana’s SOL token briefly fell to $95 on Monday, influenced by a broader risk aversion stemming from ongoing U.S.-China trade tensions. However, the cryptocurrency has since recovered to around $115.
In a contrasting move, traders have been optimizing their positions in dogecoin, the leading joke cryptocurrency by market capital. After a decline to 13 cents earlier this week, dogecoin was last traded at 15.7 cents, despite having experienced a substantial drop of over 65% from its peak of 48 cents in December.
The most popular trades have revolved around calls at 14.5, 15.5, 17.5, and 18 cents, all set to expire on April 13, highlighting a clear sign of speculative activity.
“The flow indicates pure momentum trading—short-dated, low-premium wagers aimed at seizing quick surges, likely influenced by social media or event-driven catalysts,” noted Sischka. “In a broader context, short-dated expirations and directional bets are propelling altcoin options into the limelight.”
Nevertheless, it’s worth noting that the altcoin options market remains significantly smaller than its bitcoin and ether counterparts, notably dominated by Deribit, where contracts valued in millions of dollars are traded on a daily basis.
