A significant SOL options block trade crossed the tape on Deribit via the OTC network Paradigm late Monday, suggesting expectations for 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 and a simultaneous short position in the $400 call, with 10,000 contracts for each leg and both legs set to expire on Feb. 28, according to block flows tracked by Amberdata. The block trade, considered a proxy for institutional activity, is consistent with forecasts for SOL outperformance under Donald Trump’s presidency.
A bull call spread achieves its maximum profit when the underlying asset’s price is at or above the short call’s strike price, which is $400 in this case, which means the buyer expecting prices to surge 55% from the going market rate of $257 in just over a month. The buyer is betting that the spread will move past $280, reaching up to $400 with a breakeven around $300, according to Amberdata’s Director of Derivatives, Greg Magadini.