Key Insights:

• The value of Solana’s cryptocurrency (SOL) has rocketed 85% in just four weeks, climbing from a low of $95 to approximately $176.
• Block traders have shown significant interest in the $200 call option that expires on June 27.
• Market makers currently face negative gamma exposure due to high demand for options contracts.

Overview of SOL’s Performance

SOL, the native cryptocurrency of the Solana blockchain, has enjoyed a favorable upward trend, outpacing Bitcoin, which has gained 40% in this timeframe. The options trading volume indicates that investors are betting on further price increases as traditional and crypto markets exhibit increased risk appetite.

“Traders also got long the $200 June expiration last week. This was the biggest block trade, trading 50,000 contracts for a total premium of $263,000,” said Greg Magadini, the director of derivatives at Amberdata in an email.

Translation: Traders added to their positions on the $200 expiration for June last week, marking the largest trade involving 50,000 contracts valued at $263,000.

Understanding Call Options

A call option allows the buyer to purchase the underlying asset at a predetermined price, indicating bullish expectations. It’s akin to acquiring a lottery ticket, where substantial gains can be made if the investment succeeds, while the risk remains limited to the initial cost of the option.

Market conditions suggest an uptick in volatility as SOL approaches the $200 price point.