A large SOL options block trade executed on Deribit via the Paradigm OTC network late Monday points to expectations for a significant price rally, potentially reaching $400 by the end of February.
The trade, structured as a bull call spread, involved buying 10,000 contracts for the $280 call option while simultaneously selling 10,000 contracts for the $400 call option. Both options are set to expire on February 28. According to data from Amberdata, this type of trade is often seen as an indicator of institutional involvement and aligns with expectations for SOL to perform well under the leadership of President Donald Trump.
A bull call spread is designed to generate maximum profit if the price of the underlying asset reaches or exceeds the strike price of the short call option—in this case, $400. This implies that the buyer is betting on a 55% increase in SOL’s price from its current market value of $257 within the next month. The trade will become profitable if SOL surpasses $280, with breakeven at around $300, as explained by Amberdata’s Director of Derivatives, Greg Magadini.
