XRP Options Pricing Signals Bigger-Than-Usual Move This Week, Coinbase Says

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XRP Options Pricing Signals Bigger-Than-Usual Move This Week, Coinbase Says
PrimeXBT Editorial Team
Reviewed by PrimeXBT

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XRP

Coinbase options data shows XRP priced for the largest seven-day volatility jump relative to its own history among major cryptocurrencies, ahead of Bitcoin, Ethereum and Solana. The options-implied move sits at roughly 7.7%, well above XRP's typical weekly swing of about 5%.

XRP options are pricing in the largest gap between implied and historical volatility of any major cryptocurrency this week, according to Coinbase Markets. The exchange compared each token's seven-day move implied by options prices with its own typical seven-day move, and XRP showed the widest spread.

Coinbase ranks XRP above Bitcoin, Ethereum and Solana

Coinbase said XRP's options-implied seven-day move is 1.54 times its historical median move, compared with 1.50 times for Bitcoin, 1.45 times for Ethereum and just 1.15 times for Solana. According to Coinbase Markets: "XRP is priced furthest above its own history, SOL the least".

What the 7.7% figure means

XRP's historical median absolute seven-day move sits at roughly 5%, while its current options-implied move is approximately 7.7%. That figure comes from the implied volatility priced into at-the-money options, calculated using the square-root-of-time adjustment. In simple terms, options traders are paying prices consistent with XRP moving substantially more than it normally does over the next seven days.

With XRP trading at roughly $1.43, a 7.7% move corresponds to about 11 cents in either direction. A higher implied-volatility reading usually means traders are willing to pay more for options protection or speculation, and call buyers might be preparing for an upside breakout.

XRP is trading near $1.43 after gaining just over 6% during the past 24 hours. The token has gained approximately 43.85% over the past 30 days and 15.95% over the past 90 days.

Options buyers need sufficiently large realized movement to justify paying elevated premiums. If XRP moves only about as much as it normally does, volatility buyers could end up overpaying. Conversely, if XRP makes a significant move well beyond its typical roughly 5% weekly fluctuation, the current pricing may prove justified.

Source: U.Today

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