XRP Options Open Interest Nears Record $98M as Bullish Sentiment Grows Amid High Volatility

Market sentiment around XRP remains bullish, with positive risk reversals signaling a preference for call options among traders.

The dollar value locked in XRP options contracts on Deribit is rapidly approaching a new record, driven by the token’s elevated implied volatility attracting yield-seeking investors. Notional open interest (OI) has surged nearly 38% in two weeks, rising from $71 million after the June 27 quarterly expiry to about $98 million, nearing the all-time high of $102.3 million set on June 24, according to Deribit Metrics. In contract terms, OI has grown 26% to 42,414 contracts (each contract representing 1,000 XRP).

XRP’s implied volatility—a measure of expected price swings—remains higher than major tokens like bitcoin (BTC), ether (ETH), and solana (SOL), said Lin Chen, head of Asia business development at Deribit. “XRP has delivered over 300% annual returns in the past year,” Chen noted. “Its options market reflects strong investor interest with the highest implied volatility among top tokens.”

One common strategy traders use amid this environment is selling cash-secured puts. This involves writing put options—agreements to buy XRP at a predetermined price—earning premiums in exchange for insuring against price declines. Sellers typically secure these puts by holding stablecoins, ensuring they can purchase XRP if the option is exercised.

Bullish Risk Reversals and Put-Call Ratio

Current data from Amberdata shows 25-delta risk reversals for XRP are positive, indicating a market bias toward bullish call options. Risk reversals measure the relative pricing between calls and puts with a delta of 25%, offering insights into market sentiment—positive values suggest a preference for calls, while negative values indicate a bearish tilt.

Short-term risk reversals, as well as those expiring in August and September, remain positive. Additionally, open interest exceeds 30 million call contracts compared to roughly 11.9 million puts, resulting in a put-call ratio of 0.39—another strong indicator of bullish sentiment.