Key Insights:

• An options block trade conducted over-the-counter on Monday signals strong expectations for a SOL price increase to $400.
• This surge is anticipated to materialize by the end of February.

A significant SOL options block trade occurred on Deribit using the OTC platform Paradigm on Monday, suggesting traders expect the price to reach $400 by late February.

The trade, a bull call spread, incorporated a purchase of the $280 call option alongside a short position on the $400 call, with 10,000 contracts initiated for each option. Both options are set to expire on February 28. This activity reflects institutional market behavior and aligns with projections regarding SOL’s potential growth under a future Trump presidency.

A bull call spread maximizes profit when the underlying asset’s price meets or exceeds the short call’s strike price. Here, the strategy bets on SOL surging 55% from its current market value of $257 over the span of just over a month. The anticipated breakeven point rests around $300, according to Greg Magadini, Director of Derivatives at Amberdata.