Topic: [ANN] Coinut.com - The only Bitcoin Options Exchange [beta] - page 21. (Read 34182 times)

Woah a ton of changes on coinut.  Do you have a full changelog?

Total 24 hours volume is 9982!!!

Did you get the timestamps working? 

I currently see two 2015-05-13 00:00 contracts.

Also BTCVIX (do you know him), he has some good feedback for your site.  He used to be an options trader and he's really big in the Bitcoin space.  He also might be interested in an interview.

Sorry to see that you've lost a small amount. Your idea about time frames is brilliant. We are implementing it right now. Thanks!
About price index, we are right now calculating an average of all major exchanges's bid and ask weighted by their bid and ask amount. Currently, we include Bitstamp, BTC-E, and Bitfinex.

Damn, you need a bit more transparency with how your index is calculated.  I hope you don't use btc-e.

I had 99 call/(short put) contracts at 10-15% at 248.  And damn it closed at 247.96.  (could have 6x-10x)



Yeah so you should think about implementing my suggestion about having the longer time frames create a new contract after they line up.  This way you won't eventually have the 4hr , daily, weekly, and biweekly all have the exact same expiry at one point.

And if you do implement that then you should consider adding an 8 hour binary option contract.

Hey Wang,

Your site looks really cool. I will be funding my new account shortly and make some trades.

I see you are in Singapore, Anson Rd. I spent about a year trading index futures from Singapore ... even stood in the pits for several days. I sort of did it just to get the experience before the pits closed. Another era ...

The interesting thing about options is that you can make money when the price isn't volatile unlike futures or margin trading.




I think the vanilla contracts needs a bit of work.  Right now its really hard for me to understand the interface.

I sort of want to know the break even number.  I have to convert it into a percentage and then multiply it by the price to see the break even price.  Just seeing the price doesn't intuitively tell me a lot.  Maybe I need more experience.  But I think its a big barrier to entry.




Also I'm looking at the times of your contracts.  You have a nice range of times and they'll all line up eventually.

One thing that you could do better, is by creating a new contract when two times lines up.  Currently the 4 hour contract, and the one longer than that are both at the same expiration date.  With the same orderbook.  Instead you should create a new contract for that slightly longer expiration.

I'd suggest doing something similar to okcoin.  This way you won't have a time when all the contracts expire at the same time.

So okcoin does it by the biweekly rolls over into the weeklies, and then a new biweekly is made.  Eventually biweekly expiration will equal quarterly expiration.  When that happens they create a new quarterlies instead of having only two contracts open that week.



Lastly regarding fees, hopefully you'll be decreasing them in the future when you get more liquidity.  Currently I see room for improvement.  2% for binary options and 0.5% for vanilla options.  hm thats probably what's paying for the liquidity right now. 

Yeah, we still need to wait for a while. The volume is the number of contract. Each contract is 0.01 BTC at this moment. I am actually thinking about making the interface easier so that even completely new users can also use it.

Since you have given some good suggestions, you don't need to deposit and trade to get into the signature campaign. 

Well that sounds exciting.  It's still probably quite far away.  You'll need to create more vanilla contracts and those will need to be liquid, and there's no point trading a vix if there's no liquidity.

Regarding total volume.  Is that in BTC, or contracts?

Also your UI is nice because its simple and its already quite complex for people who are completely new to options.  But do you plan on creating a more complex UI that'll give more information at your fingertips?  I actually don't have experience with options so I don't know how useful this would be.

The amount shown is the total amount for that strike price. You are welcome to join our signature campaign. Yeah, once there is enough  trading volume, we will develop a VIX product.

Yes liquidity looks good.

I also had the question about the amount.  Is that the BBO for the bid and ask price.  Or is it total amount for that strike price but some might be at 0.99654 .

I think I'll be joining your signature campaign.  It looks good and I realize how the ref works now.  I'll be glad to promote it.

Also you know that once liquidity ramps up you'll be able to offer a VIX.  Do you have plans with that as a goal?  You should work towards a VIX product. 

Our liquidity has recently doubled. There is even more liquidity coming. Stay tuned. 

I assume you want to buy vanilla options because you want to buy or sell at certain prices. Suppose you want to buy 0.01 BTC at 224 on April 26, you can buy a CALL option with strike price 224 and expiry time April 26.

OK, here is what you should do.

After you login, you first choose BTCUSD under "vanilla option" on the left side of the trading interface. Then you select the expiry date 2015-04-26. After that you fill the call order form.

In that form, you first set the Strike Price as 224. For the Order Type, you can choose market order because that allows your order executes immediately. For Amount, 1 contract means 0.01 BTC. Since you want to buy 0.01 BTC, you just put 1 there. Since it's a market order, you don't need to set a Price.

Please let me know if you have any further questions.

I am not sure. Could you walk me through an example of a call or put option using your interface?

I am a newbie. I'm not sure i'll invest but, I am interested in learning how it works.

Call and put options are different. I used call options in my example. You are right. Buyers lose only the price of the options. We are different from BTCoracle.com because you can choose different strike price and set option price in our site.

You are right that stock options allow you to buy and sell at a certain price. Our vanilla options also let you buy or sell BTC at the strike price. If it does not reach the price, you lose only the price. Is there any difference?

Don't call and put stock options work differently?

I thought the only loss on the buyer was the price of buying the stock option.
Then if you don't win the bet you only loose the price of the stock option.

Your site seems to work a bit like BTCoracle.com.

Where you have to put down a certain amount first, in order to get any profit, and then that profit is limited by a certain price multiplier on how much you put down. Which makes both sides of the trade obligatory not optional.

As far as I know the stock option allows one to buy and sell at a certain price, and if it doesn't reach that price you only loose the price of the option.

How is your system different?

If you want 1BTC, you need to put 100 as your amount. This is correct.

The price should be based on your estimation. I give you some intuitions using an example.

Suppose you want to buy 100 CALL option with strike price 230. If the final price is above 230, you get 1 BTC back and thus you make profit=1 - Price*100. Otherwise, you get nothing back and thus lose Price*100. To make profit, you want to make sure your expected reward is positive. If the chance that the final price is above 230 is P, then your expected reward is P*(1-Price*100) + (1-P)*(-Price*100). To make it positive, Price should be less than 0.01*P. So your estimation of P is the key.

So If I want 1BTC i'd put in 100 as my amount and set the Price at .01 BTC?

And if I set my strike price to 230 USD and it goes to 232, I'd get to buy 1 BTC at what price exactly?

An option contract has a seller and a buyer. In our site, contract size is 0.01BTC. Amount is the number of contracts. Bid shown on the trading interface is the best buyers' price, and ask the best sellers' price. Price of the order form is the price that you want to buy or sell the contracts at.

I’m new to bitcoin and i’m new to options trading. I understand the basic principle of call and put options. But I’m not understanding the interface you use.

   What is the “amount”? the number of options you are buying?
   
   What is the “price”? ...

   I understand the strike price is the point at which the bet takes place.

What is the

 “bid", and “ask”?



What?

Hi Ian, how much do you want to buy? We can definitely find a seller for you if it is not too large.