Author Topic: Options. News and Information  (Read 134 times)

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Offline optionswallet

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Options. News and Information
« on: July 05, 2019, 10:15:50 am »
This forum thread is intended for publishing news and information on options issued by an account -- options-wallet

July 2019
Call Option - OPTIONS.J19CALL
Strike Price - 0.75 BTS/CNY
Date of expiration - 20 july 2019 17:00:00 UTC.

Technical information :
This option will cost 1 BTS if the price of BTS will be more than 0.75 CNY. This option will cost 0 BTS if the price of BTS will be less than 0.75 CNY


Risks:
This option has two types of risk.
- Investment. It completely depends on the buyer and seller of the option, as well as on the current market situation.
Please familiarize yourself with the principles of option trading before making exchange transactions.

- Operational. The issuer of the option may provide an incorrect feed (0 or 1) on the expiration date, or not provide a feed (in case of loss of control over the account or for other reasons).



Example

You bought an option OPTIONS.J19CALL  July 1, 2019 at the current market price of 0.17 BTS / CNY in the amount of 100 000

Your costs are 100,000 OPTIONS.J19CALL * 0.17 BTS = 17 000 BTS
If July 20, 2019 BTS price is equal to or higher than 0.75 CNY, then the cost of the option  is 1BTS
In this case, your income is 100 000 OPTIONS.J19CALL * 1BTS - 17 000 BTS = 83 000 BTS
Profitability of the transaction 100 000 BTS / 17 000 BTS = 588%

or

Your costs are 100,000 * 0.17 BTS = 17 000 BTS
If July 20, 2019 the price of BTS is less than 0.75 CNY, then the cost of the option - 0 BTS
In this case, your loss is 17 000 BTS.

You can also take an option in debt, like any other smart asset, and sell it at the market price.
In this case, you assume that by the expiration day the option will not go out in money, and you have the opposite trading position as in the example above.

Offline bitstopia2049

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Re: Options. News and Information
« Reply #1 on: July 06, 2019, 01:23:21 am »
This forum thread is intended for publishing news and information on options issued by an account -- options-wallet

I think this is mixed up because you flipped the price

Strike Price - 0.75 BTS/CNY    ( ==  1.33 cny /bts)

"If July 20, 2019 BTS price is equal to or higher than 0.75 CNY, then the cost of the option  is 1BTS"


Isn't this just a prediction market UIA  ?             

If BTS price is > X   on date Y  then token  = 1 BTS  if not then token = 0        Issuer = Short position.....Buyer = Long position

Options are either CALL or PUT...


Offline optionswallet

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Re: Options. News and Information
« Reply #2 on: July 18, 2019, 05:16:29 pm »
NEW OPTION LAUNCHED

August 2019
PUT Option - OPTIONS.19AU025P
Strike Price - 0.25 BTS/CNY
Date of expiration - 20 august 2019 17:00:00 UTC.

Technical information :
This option will cost 1 BTS if the price of BTS will be less than 0.25 CNY. This option will cost 0 BTS if the price of BTS will be more than 0.25 CNY


Risks:
This option has two types of risk.
- Investment. It completely depends on the buyer and seller of the option, as well as on the current market situation.
Please familiarize yourself with the principles of option trading before making exchange transactions.

- Operational. The issuer of the option may provide an incorrect feed (0 or 1) on the expiration date, or not provide a feed (in case of loss of control over the account or for other reasons).