Sun, the native cryptocurrency of Solana programmable blockchain has staged a sharp four-week rally that waves 85% since April 7-more than twice the pace of Bitcoin (BTC) and large options that dealers place for additional gains.
The token climbed up to about $ 176 in recent days when crypto and traditional markets embraced a greater degree of risk. Bitcoin, the leading cryptocurrency with market value, has increased 40%, Coindesk data shows.
It is unlikely that the winnings will turn in the near future if block dealers – primarily institutions and market participants who execute large trade orders over disk and outside the public order book – are correct. They have beaten the derivative noted June 27th expired Sol $ 200 call option in large numbers, a sign they expect the price to rise above this level by the end of the first half.
“Dealers also got the long expiry of $ 200 June last week. This was the largest blockage trading that traded a total of 50,000x contracts for $ 263,000 in Premium,” said Greg Magadini, director of derivatives in Amberdata, in an E email. On derivative, an option contract represents a sun.
A call opportunity gives the buyer the right, but not the obligation, to buy the underlying asset at a predetermined price at a later date. A call buyer is implicit Bullish on the market. It’s like buying a lottery where the proprietor has the chance to achieve significant gains if they win, while they only risk the original amount paid to buy the ticket.
Magadini added that these call options were snapped up on an annual implicit volatility (IV) of 84%. In other words, trading time -determined it perfectly and snapped calls while they were cheap as Sol’s IV typically hovers in triple digits.
Data shows that the demand for option of $ 200 has left market manufacturers or dealers with a significant net negative gamma exposure at the strike price.
Market manufacturers with a net negative gamma exposure typically buy when prices rise and sell under DIPs, with the aim of rebalancing their portfolios against a delta neutral or market-neutral position. Their coverage activities often reinforce market fluctuations.
So it is likely that the volatility will pick up when the sun potentially crosses the $ 200 mark.
