Block Solana Bets trade up to $400 in SOL price rally

A block trade of SOL options on Deribit through the OTC paradigm on Monday evening crossed the tape, expecting the price to rise to $400 by the end of February.

The trade, structured as a bull call spread, included a long position in the $280 call and a simultaneous short position in the $400 call, with 10,000 contracts for each leg and two legs expiring on Feb. 28, according to blockstreams. By Amberdata. Block trades are large orders placed by executed institutions, usually over the counter (OTC).

When the price of the underlying asset is at or above the strike price of the short call, the bull call spread maximizes profit, in this case $400. Greg Magadini, Director of Derivatives at Amberdata, said the buyer believes the spread will break above $280, reach $400, and reach $300.

Importantly, the downside risk in a bull call spread is limited by the total premium paid for creating the strategy, protecting the trader from large losses if the market turns down. Currently, SOL is trading at $254 after reaching a record high above $290 over the weekend, according to CoinDesk data.