Cryptocurrency XRP payments faded at $ 3.40 in January but from 30% to $ 2.40.
Despite this decline, the $ 5 call option remains most favored to the derivit, which offers significant reversal potential for consumers if the price exceeds that level. However, this does not have to indicate a clear positioning to entrepreneurs.
At the time of the press, the $ 5 call is the most popular strike, with a notional open interest of $ 3.84 million – the highest of all XRP strikes in exchange, according to data resource Derivit metrics. The notional open interest reflects the dollar value of all active choices in contracts at any time. In the deribit, a contract of choice represents an XRP.
“Most of these are covered calls,” explained Lin Chen, head of the derivit business development, in an interview with CoinDesk. It explains the large buildup in open interest for out-of-the-money (OTM) calls.
The Covered call The approach involves the sale of higher levels of OTM calls while holding the underlying property-in this case, XRP. This method allows entrepreneurs to get the premium from selling or writing a call while limiting potential losses from an unexpected market rally.
This approach not only generates additional yield at the top of their holdings but is also popular with traditional markets as well as in bitcoin and ether trading.
