Any offers of BTC Options, to be settled in GBP?

stereotype

legendary

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Quote from: im3w1l on April 15, 2013, 03:13:47 PM

Quote from: theta on April 06, 2013, 02:52:39 PM

If someone came up with a trading platform (like an exchange) I would be interested in trading options in BTC, settled in GBP. I would even consider proper market making providing bid-offers for an entire strip of options and different maturities. If in a few years, trading volumes have continued to increase at the current rate, I could even consider coming up with such a service as a full time job (not worth it yet though

)

I could do that, but I'd have no idea how to compute capital requirements for those selling options. How?

What theta said. Or put another way, make sure you cover your backside for every bitcoin eventually.

theta

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Given the extremely high volatility the safest way to start is to have fully collateralized trades, i.e. allow only covered calls selling (overwriting existing BTC positions held by the exchange) and selling puts with the full GBP amount for potential assignment also held in the option seller's account.

im3w1l

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Quote from: theta on April 06, 2013, 02:52:39 PM

If someone came up with a trading platform (like an exchange) I would be interested in trading options in BTC, settled in GBP. I would even consider proper market making providing bid-offers for an entire strip of options and different maturities. If in a few years, trading volumes have continued to increase at the current rate, I could even consider coming up with such a service as a full time job (not worth it yet though

)

I could do that, but I'd have no idea how to compute capital requirements for those selling options. How?

stereotype

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Quote from: Projects on April 07, 2013, 02:29:38 PM

Quote from: theta on April 07, 2013, 02:05:14 PM

Quote from: stereotype on April 07, 2013, 07:31:41 AM

Got my option, although the terms are to exercise in BTC and not GBP.... https://bitcointalk.org/index.php?topic=169502.0;topicseen

You got a bargain, given historical realised volatility, IMHO it's worth about double that.

He did get a good deal, was only because it was on behalf of a relative of mine who wished to hedge a small amount of his coins incase BTC value remains the same or crashes.
This was a one off deal.
He was going to sell 10 BTC for £1000 but decided to do this instead so technically if the option is excercised he will make an additional £600.
I do not believe BTC will crash and neither does he, but he actually will make more money overall if BTC does jump over £150 - so hopefully it will and be win-win for all parties

He reads this forum but does not post so I am conducting this on his behalf - I also hold the 10 BTC in my posession until the end of this also.

Tis a fine example of how different players buy and sell for all sorts of strategies and reasons. Who would have thought that Bitcoin would evolve into Options and Hedging so soon, eh?

Regards to your relative.

theta

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Quote from: Projects on April 07, 2013, 02:29:38 PM

Quote from: theta on April 07, 2013, 02:05:14 PM

Quote from: stereotype on April 07, 2013, 07:31:41 AM

Got my option, although the terms are to exercise in BTC and not GBP.... https://bitcointalk.org/index.php?topic=169502.0;topicseen

You got a bargain, given historical realised volatility, IMHO it's worth about double that.

He did get a good deal, was only because it was on behalf of a relative of mine who wished to hedge a small amount of his coins incase BTC value remains the same or crashes.
This was a one off deal.
He was going to sell 10 BTC for £1000 but decided to do this instead so technically if the option is excercised he will make an additional £600.
I do not believe BTC will crash and neither does he, but he actually will make more money overall if BTC does jump over £150 - so hopefully it will and be win-win for all parties

He reads this forum but does not post so I am conducting this on his behalf - I also hold the 10 BTC in my posession until the end of this also.

Yes, of course he will make more money than having sold his BTC as he remains long the coins up to a price of £150, and you both will be better off if for example 1BTC=£200 by July. But my point was more about the fair value of the option if you used an implied volatility anywhere near historical realized volatility. It should be worth more like 20%. Good luck to both of you anyway!

Projects

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Quote from: theta on April 07, 2013, 02:05:14 PM

Quote from: stereotype on April 07, 2013, 07:31:41 AM

Got my option, although the terms are to exercise in BTC and not GBP.... https://bitcointalk.org/index.php?topic=169502.0;topicseen

You got a bargain, given historical realised volatility, IMHO it's worth about double that.

He did get a good deal, was only because it was on behalf of a relative of mine who wished to hedge a small amount of his coins incase BTC value remains the same or crashes.
This was a one off deal.
He was going to sell 10 BTC for £1000 but decided to do this instead so technically if the option is excercised he will make an additional £600.
I do not believe BTC will crash and neither does he, but he actually will make more money overall if BTC does jump over £150 - so hopefully it will and be win-win for all parties

He reads this forum but does not post so I am conducting this on his behalf - I also hold the 10 BTC in my posession until the end of this also.

theta

full member

Activity: 164

Merit: 100

Quote from: stereotype on April 07, 2013, 07:31:41 AM

Got my option, although the terms are to exercise in BTC and not GBP.... https://bitcointalk.org/index.php?topic=169502.0;topicseen

You got a bargain, given historical realised volatility, IMHO it's worth about double that.

stereotype

legendary

Activity: 1554

Merit: 1000

Got my option, although the terms are to exercise in BTC and not GBP.... https://bitcointalk.org/index.php?topic=169502.0;topicseen

theta

full member

Activity: 164

Merit: 100

Quote from: stereotype on April 06, 2013, 03:13:53 PM

Quote from: theta on April 06, 2013, 02:52:39 PM

If someone came up with a trading platform (like an exchange) I would be interested in trading options in BTC, settled in GBP. I would even consider proper market making providing bid-offers for an entire strip of options and different maturities. If in a few years, trading volumes have continued to increase at the current rate, I could even consider coming up with such a service as a full time job (not worth it yet though

)

Not sure if youre UK based, but i started a thread, in a similar vain..... https://bitcointalksearch.org/topic/why-is-uk-so-slow-to-jump-on-this-158010

I am, yes, I'm checking that thread.

stereotype

legendary

Activity: 1554

Merit: 1000

Quote from: theta on April 06, 2013, 02:52:39 PM

If someone came up with a trading platform (like an exchange) I would be interested in trading options in BTC, settled in GBP. I would even consider proper market making providing bid-offers for an entire strip of options and different maturities. If in a few years, trading volumes have continued to increase at the current rate, I could even consider coming up with such a service as a full time job (not worth it yet though

)

Not sure if youre UK based, but i started a thread, in a similar vain..... https://bitcointalksearch.org/topic/why-is-uk-so-slow-to-jump-on-this-158010

theta

full member

Activity: 164

Merit: 100

If someone came up with a trading platform (like an exchange) I would be interested in trading options in BTC, settled in GBP. I would even consider proper market making providing bid-offers for an entire strip of options and different maturities. If in a few years, trading volumes have continued to increase at the current rate, I could even consider coming up with such a service as a full time job (not worth it yet though

)

stereotype

legendary

Activity: 1554

Merit: 1000

Are there any reputable members, who could offer a BTC Option agreement in £s?

The fee could be paid in BTC, but for the Option to be settled in GBP/Sterling.

Thanks

Topic: Any offers of BTC Options, to be settled in GBP? (Read 1067 times)