The block trade was a bull call spread that would see maximum profit on a potential move to $400 or higher by the end of February, according to data tracked by Amberdata.
Updated Jan 22, 2025, 5:26 a.m. UTCPublished Jan 22, 2025, 5:00 a.m. UTC
A significant SOL options block trade crossed the tape on Deribit via the OTC network Paradigm late Monday, suggesting expectations for a price rally to $400 by the end of February.
The trade, structured as a bull call spread, involved a long position in the $280 call and a simultaneous short position in the $400 call, with 10,000 contracts for each leg and both legs set to expire on Feb. 28, according to block flows tracked by Amberdata. The block trade, considered a proxy for institutional activity, is consistent with forecasts for SOL outperformance under Donald Trump’s presidency.
A bull call spread achieves its maximum profit when the underlying asset’s price is at or above the short call’s strike price, which is $400 in this case, which means the buyer expecting prices to surge 55% from the going market rate of $257 in just over a month. The buyer is betting that the spread will move past $280, reaching up to $400 with a breakeven around $300, according to Amberdata’s Director of Derivatives, Greg Magadini.
Omkar Godbole
Omkar Godbole is a Co-Managing Editor on CoinDesk’s Markets team based in Mumbai, holds a masters degree in Finance and a Chartered Market Technician (CMT) member. Omkar previously worked at FXStreet, writing research on currency markets and as fundamental analyst at currency and commodities desk at Mumbai-based brokerage houses. Omkar holds small amounts of bitcoin, ether, BitTorrent, tron and dot.
