Block Trade in Solana Bets on a SOL Price Rally to $400

The block trade was a bull call spread that would see maximum profit on a potential move to $400 or higher by the end of February, according to data tracked by Amberdata.

What to know:

• An options block trade executed over-the-counter Monday shows expectations for a SOL price rally to $400.
• The trading entity expects such a rally to happen by the end of February.

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.

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