Sol, the native cryptocurrency of the Solana programmable block chain has organized a strong four -week rally, increasing 85% since April 7, more than double the Bitcoin (BTC) rhythm, and large options of large options are positioning to obtain more profits.
The Token rose to around $ 176 in recent days, since cryptographic and traditional markets adopted a greater degree of risk. Bitcoin, the leading cryptocurrency by market value, has increased by 40%, according to Coindesk data.
It is unlikely that the profits were reinvested in the near future, if block merchants, mainly institutions and market participants who execute large commercial orders in the counter and outside the public order book, are correct. They have collected the call option of expiration of June 27 of the dollar list in large numbers, a sign that they expect the price to increase above that level before the end of the first half.
“The merchants also had a long time the expiration of $ 200 in June last week. This was the largest block trade, which is quoted 50,000x contracts in total for $ 263,000 in premium,” said Greg Magadini, director of Derivatives of Amberdata, in an email. In Delibit, an option contract represents a sun.
A purchase option gives the buyer the right, but not the obligation, to buy the underlying asset at a predetermined price at a later date. A call buyer is implicitly optimistic in the market. It’s like buying a lottery ticket, where the headline has the opportunity to make significant profits if they win, while risk only the initial amount paid for buying the ticket.
Magadini added that these purchase options were obtained in an annualized implicit volatility (IV) of 84%. In other words, merchants timed him perfectly, taking calls while they were cheap, since the intravenous sun usually looms in triples.
The data show that the demand for the purchase option of $ 200 has left market manufacturers or distributors with an important net exposure to negative gamma at the exercise price.
Market manufacturers with a net exposure to negative gamma generally buy as prices increase and sell during falls, with the aim of recovering their portfolios towards a neutral position in the market, or neutral in the market. Its coverage activities often amplify changes in the market.
Therefore, volatility is likely to recover since Sol potentially crosses the $ 200 mark.
