“SOL PUT OPTIONS ACCOUNTED FOR MOST OF THE BLOCK TRADES THAT Crossed the Tape on Deribit Last Week.”, – WRITE: www.coindesk.com
Last Week, Sol Block Trades Totling $ 32.39 Million in Nocial Value Crossed The Tape on Deribit, Representation Nearly 25% of the Total Options Activities of $ 130.74 Million. The Remainder of the Activity Compared Screen Trades, Accounting To Amberdata. That’s the Second-Highhest Proportion of Block Trades to Total Activity On Record.
A “Block Trade” in Options Refers to A Significant, Privately Negotied Options Transaction Between Two Parties Involving A Large Number of Contract. Such Trades, Typically Associated with While Activity, Are Execouted Over-The-Counter and Outside the Regular Order Book and THEN BOOKED ON THE EXCHANGE, ALLOWING FOR A MINIMAL IMPACTACT.
Options are derivative Contracts that guide the right but not the Oblagation to Buy or Sell the Underlying Asset, in this Case, Sol, at A Presset Price on. A Call Option Gives The Right to Buy, While A Put Option Provides the Right to Sell. On Deribit, Who’s Accounts for Over 85% of the Global Crypto Options Activity, One Options Contract Represents 1 Sol.
Last Week’s Spike in Sol Block Trades Featured A Preference for Put Options, Which Traders Use to Hedge Against or Profit From A Potential Price Slide.
“Nearly 80% of the Block-Trade Volume Was Contentrated in Put Contracts. Compared to Only 40% Puts for Btc and 37.5% Puts For Eth Dringing The Same Timeframe,” Greg Magadinin. Ambrdata, Said.
Sol Options: Weekly Volume in Block Trades and Screen Trades. (Ambrdata/Deribit)
The Whale Demand for Put Options Comes As Sol’s Outlook Appears Grim Following the 46% Price Slide to $ 160 in Just Over Five Weeks. The Activity on the Solana Blockchain, Which Became A Go-To-Place for Memecoin Traders Last Year, Peked with The Launch of the Trump Token on Jan. 17, Three Days Before Donald Trump Was Inaugurated As the President of the Us
SINCE THEN, The Number of Daily Transactions on Solana and the Cumulative Daily Volume on the Solana-Basted Decentralized Exchanges Has Declined Signitificantly, Access to Data Source. That have been weaned the Bullish Case for Sol.
Solana: Daily Transactions and Dex Volume. (Artemis)
Plus, The Impening Sol Token Unlock on Jan. 1 Presents A Significant Headwind, per Deribit’s Asia Business Development Head Lin Chen.
“Solana (Sol) Will A Majoor Token Unlock Event on March 1, Releasing 11.2 Million Sol Tokens, ValUED AT APPROXIMATELY $ 2.07 Billion. This RepreSents 2.29 from the FTX Estate and A Foundation Sale, “Chen Said.
Chen Explained That Large Unlock Could Breed Market Valativity As It Accounts for Nearly 59% of Sol’s Daily Spot Trading Volume. Hence, Its Natural to See a Lot of Hedging Flow in Put Options in Anticipation of a Potential Extended Sol Price Slide.
“Many traders would also take this Opportunity to Long Vol[atility] to Generate Good Yield, “Chen Noted.
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