A major SOL options block trade crossed the ribbon on Deribit via the OTC Paradigm network on Monday evening, suggesting expectations of 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 option and a simultaneous short position in the $400 call option, with 10,000 contracts for each leg and both legs expiring on December 28. February, based on tracked block flows. by Amberdata. Block trading, considered an indicator of institutional activity, is consistent with forecasts of SOL outperformance under President Donald Trump.
A bull call spread reaches its maximum profit when the price of the underlying asset is at or above the strike price of the short call, which in this case is $400, meaning the buyer expects prices to rise by 55%. % from the current market rate of $257 in just over a month. The buyer is betting that the spread will exceed $280 and reach $400 with a breakeven point of around $300, according to Amberdata derivatives director Greg Magadini.
