How to Trade XRP Options

Ripple (XRP) is one of the largest and most popular cryptocurrencies in the world. But directly holding XRP isn’t the only way to gain exposure. If you want something different from traditional spot trading, as well as more flexibility and profit potential, XRP options might be worth your time and money.

Crypto options let you profit whether the price goes up, down, or even when it stays flat. They enable countless different strategic investment strategies that might seem complex at first, but once you learn how to harness them, they can give you more options for your crypto trading.

Let’s start with what XRP options are and how they work.

What Are XRP Options?

XRP options are contracts that give you the right, but not the obligation, to buy or sell XRP at a set price on or before a specific date.

There are two types of options:

• Call options: You bet the price will go up
• Put options: You bet the price will go down

Options are used in traditional finance all the time. These days, crypto platforms like Deribit, Delta Exchange, and OKX, to mention a few, offer similar tools for traders who want more than simple spot or futures trading.

How XRP Options Work

XRP options are a type of crypto derivative. This means that they don’t directly involve buying XRP or selling it. Instead, they are contracts based on the XRP price.

XRP options work like other crypto options, such as Bitcoin options or Ethereum options. The key difference is the underlying asset, which is XRP in this case. This means different price patterns, different volatility, and, of course, different trading volume.

As of June 2025, XRP has a current circulating supply of over 55 billion coins, with a capped total supply of 100 billion. This relatively high supply contributes to XRP’s lower volatility compared to coins like Bitcoin, which directly influences options strategies, which we will discuss later.

The price at which you buy or sell XRP is called the strike price. The date when your contract expires is called the expiration date.

Generally speaking, options are used for several main strategies, including:

• Speculating on XRP going up or down
• Hedging to protect yourself against price swings
• Trading with leverage using less capital

Let’s say that XRP is trading at $0.70. You buy a call with a strike price of $0.90, expiring in one month. If XRP climbs to $1 before expiry, your option is “in the money.” You can:

1. Buy XRP at $0.90 and sell it for $1, or
2. Sell the option itself and pocket the difference

If XRP rises, your option is in the money (ITM). This happens when the market price is above the strike price. If XRP stays below $0.90, your option is out of the money (OTM).

If XRP stays below $0.90, the option will expire worthless, but the only thing you will lose is the amount you paid, which is called the premium.

Understanding Moneyness

Let’s take a closer look at ITM, ATM, and OTM, otherwise known as moneyness. Moneyness tells you whether an option is currently profitable.

Here’s how it works:

In-the-Money (ITM)

• A call option with a strike price of $0.60 is ITM. This gives you the right to buy XRP for less than its current market price. If you exercise it, you get a profit of $0.10 per token if XRP trades at $0.70.
• A put option with a strike price of $0.80 is also your ITM. You’d be able to sell XRP for $0.80 when it’s only worth $0.70 on the market.

At-the-Money (ATM)

• A call or put option with a strike price of $0.70 is ATM. That’s exactly where XRP is trading at the moment, so if the price doesn’t move, there is no need to exercise the option. You are at break-even, except for the non-refundable premium.

Out-of-the-Money (OTM)

• A call option with a strike price of $0.85 is OTM. That means that you’d be buying XRP for more than it is worth on the market. Unless XRP goes above $0.85 before expiration, your option will expire worthless.
• A put option with a strike price of $0.55 is also OTM. You’d be selling XRP for less than it is worth.

Understanding Open Interest

Finally, you should know about open interest. This is the number of active XRP option contracts that haven’t expired or been closed. The higher the open interest, the more activity there is on the market.

Why does this matter, you wonder?

Well, high open interest usually means better liquidity, which generally translates to tighter spreads and less price slippage. If a lot of money is flowing into certain strike prices, this can help tell you what traders are thinking.

XRP Options vs. XRP Futures

XRP options and XRP futures are both derivatives, but they are not the same thing. They don’t involve buying XRP directly, and the value comes from the price of XRP itself. However, they work very differently.

In practice, when you trade XRP futures, you agree to buy or sell XRP at a set price in the future. If XRP moves the wrong way, you can lose a lot of money, especially when leverage is involved. If it moves the right way, you can potentially make big gains.

With XRP options, you pay a premium for flexibility and don’t have to go through with the trade if the market moves against you. Your loss is limited to the premium.

XRP futures are mandatory contracts. Win or lose, you are committed to the contract. This makes them riskier but potentially more profitable.

Options, on the other hand, are very flexible. You can walk away if the trade doesn’t go your way, and your loss will be limited to the premium paid. This is why they are useful for hedging and testing market movements with less capital.

Popular XRP Options Strategies

XRP’s price doesn’t behave like Bitcoin’s. It is more influenced by legal developments, SEC headlines, and Ripple’s institutional adoption. Here are a few strategies people use when they trade XRP futures:

1. Crash Insurance (Protective Put)

A protective put will act like insurance if you hold XRP and fear a drop in its price. This is a common risk management strategy among crypto traders and it is one of the most popular ways to use options in general.

XRP’s pricing behavior is unique. Its current supply in circulation remains high, and most tokens are already in the market, unlike coins with aggressive emissions. This makes it more sensitive to legal headlines or adoption news rather than scarcity-driven price swings.

How it works: You can buy a put option that gives you the right to sell XRP at a specific price. If the market tanks, the value of the put increases and will offset your losses on spot XRP.

Example: Ahead of the March 28, 2025, XRP options expiry, Deribit data showed traders piling into ITM calls, but puts were popular too as a hedge. Open interest surged around this specific date, especially in puts at strikes just below the spot. This is a clear example of protective positioning.

In this example, traders were bracing for volatility because of uncertainty in regulations. Owning puts could help cushion against a drop at a minimal cost.

When to consider: Before legal events, earnings calls from Ripple, and token unlocks.

2. Covered Calls

Covered calls are simple income plays in case you think XRP will remain in a range. Instead of betting on a big price rally, traders use this strategy to earn steady premiums while holding their XRP.

How it works: You can hold XRP and sell a call option above the current market price. If XRP doesn’t break out, you pocket the premium. If it rallies, you may need to sell at the strike price, but you are still left with a gain.

Example: As of March 4, 2025, the $5 call strike had the highest notional open interest, around $3.84 million on Deribit. Still, analysts like Lin Chen from Deribit point out that these are mostly covered calls, not pure bullish plays.

This means that many traders held XRP and sold OTM calls to earn steady premiums because they expected limited upside in the near term.

When to consider: Sideways markets, especially post-news consolidation phases.

3. Speculative Pop (Long Call)

A long call strategy means a leveraged upside bet on XRP. This is common around catalysts like ETH filings or court rulings. You aren’t hedging against another investment or trying to earn passive income. You are simply gambling that its price will rise with the potential for major profits.

How it works: You can buy a call option with a strike price you believe XRP could reach on bullish news, like Ripple IPO rumors or even new partnerships.

Example: In August 2024, traders locked over 4.3 million contracts in the $1.10 call with maturity on August 28. This represented around $2.44 million in open interest, a spike that followed bullish sentiment tied to the ETF speculation. Traders jumped into long calls because they expected a big move.

When to consider: Ahead of anticipated bullish catalysts or trendline breakouts.

4. Volatility Play (Straddle)

Another example of a popular strategy is the straddle, which means that traders make a neutral bet on big price moves in either direction. This can be a useful strategy when you expect volatility, but aren’t sure which way it will go.

How it works: You can buy both a call and a put option at the same strike price and expiration. If XRP moves sharply in any direction, one leg may gain more than enough to cover the cost of both.

Example: Before the March 28 expiry, the markets showed wide open interest in both strike-aligned calls and puts. This indicated that traders were setting up straddle-like positions ahead of anticipated price swings.

When to consider: Just before major court decisions or token unlocks when volatility is expected, but direction is uncertain.

Best XRP Options Platforms

Not all crypto options platforms support XRP. Those that do, often vary in liquidity, trading volume, and fees. For instance, while ByBit and OKX offer BTC and ETH options, they don’t offer XRP options. The same applies to Lyra, dYdX, and other popular derivatives platforms.

Let’s take a look at a few trending XRP platforms.

1. Deribit

Deribit is the world’s largest crypto options exchange. It was founded in 2016 and is headquartered in Panama. Today, Deribit dominates the market with over 80% of the global crypto options open interest.

As of March 2025, Deribit has the highest open interest for XRP options at the $5 call strike. They have nearly $3.84 million in notional value. This is a bold, bullish bet, considering XRP is trading under $0.70.

In May 2025, Coinbase agreed to acquire Deribit for $2.9 billion. At this point, Deribit has around $30 billion of open interest, making it the leading crypto options exchange globally.

XRP options on Deribit:

• Product: XRP/USDC European-style options
• Market share: Deribit holds over 95% of all XRP options open interest
• Settlement: Cash-settled in USDC upon expiration
• Expiration dates: A wide range of monthly and weekly expirations

2. Binance

Launched in 2017, Binance is the world’s largest crypto exchange by volume by a massive margin. Today, it offers an extensive ecosystem of products, including futures, spots, margin, and options trading. On top of that, Binance has a strong educational platform.

XRP options were introduced in 2024 via Binance’s Options RFQ (Request for Quote) feature. This feature allows users to request customized option quotes directly from liquidity providers, which gives more competitive pricing for trading XRP options.

Besides trading, Binance stands out with its popular educational resources, which are excellent for beginner traders.

XRP options on Binance:

• Product: XRP/USDT vanilla options (European style)
• Settlement: Options are settled in USDT
• Expiration dates: Flexibility in expiration dates ranging from weekly to monthly
• Strike prices: Multiple strike prices available per expiration

Overview of XRP Options Platforms

How to Start Trading XRP Options

XRP options are a relatively new way to speculate on the price movements of the coin or manage your risks. They aren’t as widely available as Bitcoin or Ethereum options, but XRP options can still be accessed through a select few platforms. Here is a step-by-step guide to help you start trading them:

1. Find a Platform That Offers XRP Options

First, choose one of the available platforms that supports XRP options. Keep in mind that a few popular platforms have added XRP to their options roster, at least for now. Many mainstream platforms like Bybit and OKX don’t currently support XRP options.

2. Create and Secure Your Account

Once you choose a platform, sign up using your email and complete the required KYC verification. Make sure to enable 2FA to add a layer of security.

On decentralized options platforms, you will be asked to connect your crypto wallet.

3. Fund Your Trading Account or Wallet

To start trading, you will need to fund your trading account with fiat or cryptos like USDT, USDC, or XRP. You can deposit crypto directly or use fiat onramps where supported.

For DeFi platforms, make sure your wallet has enough coins for gas fees and sufficient coins to open positions.

4. Learn the Fundamentals of XRP Options

Understanding the options’ terms and fundamentals is crucial. You should know what strike price, expiry date, premium, implied volatility, and other related terms mean. You should also learn more about the Greeks (Delta, Theta, Vega, Gamma) before you start investing in options.

Educational hubs like Investopedia, Binance Academy, and Delta Exchange’s blog offer great starting points.

5. Pick a Strategy

Naturally, you need to devise a strategy before you dive into XRP options headfirst. If you are bullish on XRP, you might buy call options. If you are bearish or neutral, covered calls and long puts might be a better option for you. XRP’s lower volatility and its high circulating supply typically result in a lower premium, which is great for slot income-generating strategies.

6. Try Demo/Testnet Trading

Before you risk real capital, it’s smart to explore paper trading features. Some DeFi platforms often have testnets where you can simulate trades. For instance, Zeta Markets has a testnet on Solana, while Delta Exchange offers a demo mode with virtual funds. A handful of centralized exchanges also offer paper trading to help you practice your strategies.

Risk Management Tips

Options trading can be risky, especially with volatile assets like cryptocurrencies. Even though XRP is generally more stable than BTC, options can (and often do) still expire worthless. Without proper hedging, you may end up with serious losses.

Here are some tips to protect you:

• Don’t trade with money you cannot afford to lose
• Consider using stop-loss or limit orders when available
• Don’t misjudge volatility – this can lead to overpriced or underpriced premiums
• Consider diversifying across expirations
• Don’t sell naked calls or puts unless you fully understand the risks

Conclusion

XRP options may not be as popular as Bitcoin or Ethereum options, but they are a great way for traders to speculate, hedge, or earn passive income with an altcoin. They are growing in popularity constantly, so we can expect them to pop up on other derivatives platforms in the near future.

Still, before you start trading XRP options, you should have a solid understanding of how derivatives work, as well as select a good platform to do this. Start slow, educate yourself, and experiment on demo platforms before you go live.

FAQ

References

1. Risks Related to Supply and Circulation of XRP – Binance
2. RippleTalk of Reddit
3. Coinbase to Acquire Deribit – Coinbase
4. XRP Hitting $5 Gets Millions in Bets, But There Is a Catch – CoinDesk
5. XRP Bullish Options’ Popularity Jump May be Due to ETF Speculation – CoinDesk
6. XRP to $5 on Deribit – CoinDesk
7. Deribit Has Over 95% of XRP Options Volume – Binance
8. European-Style XRP Options Contracts to Debut on Binance – Binance