Large Traders Take Diverging Strategies on Crypto Market Volatility
In a market characterized by choppy price action and uncertainty, large traders of major cryptocurrencies are quietly taking divergent paths.
While bitcoin investors are bracing for volatility with non-directional option plays, some traders are betting on the opposite, recent block trades on crypto options exchange Deribit show.
Over the past week, strangles accounted for 16.9% of bitcoin option blocks traded on the platform, while straddles made up 5%. Both are non-directional volatility strategies, betting on significant price moves, whether up or down. XRP traders, in contrast, shorted strangles, in effect betting against increased volatility.
A strangle involves buying out-of-the-money (OTM) call and put…
