i want to do a bitcoin options service so people can hedge or leverage their investments. does anyone want to help me do this?
i have been doing derivatives for over 10 years now as well as designing frontend systems for sp100 banks. You cannot write option contracts as a market maker without putting up the $ to prove you can payout, nevermind the software challenges of pricing the premium/vol.
Using a very simple example, you write a $130 strike put contract (size = 1 btc) and try to pocket $15 for the premium, as a buyer i will need to know you can pay me $130 if bitcoin drops to $0 (realistically people will demand at least a 75% cash cover given btc's past price actions). You are nobody, not regulated, not exchange listed. Noone (who's sane) is going to trust you unless you put up the cash in escrow. So for every contract you write you have to be cash covered, just think about how much cash you need and how realistic it is.
Now think about how you are going to hedge those put options, most market makers delta hedge (google it) their portfolio by shorting the underlying to try maintain a net neutral delta position (and often fails to do that during fast price markets as vol explodes - losing money). Those are professional traders backed by billions of $ in technology and size from the firms they work for.
Related to above, your third problem - there is no way to short the underlying bitcoins to hedge the put contracts you wrote.
So if you are legit and put up the cash to cover the put contracts you will make no money and likely lose most of it, or you can run a scam and just sell those option contracts pocketing premiums with no intention of ever honoring them if the price hit your strike. Many sell side leveraged hedge funds actually run this type of scam, they will pocket premium for years until a blackswan like in 2008 where massive out the money put contracts they wrote became in the money, then they declare bankruptcy. You may get away with it, or you may have people coming after you in court or police.
On the call side, there is no point. Why would anyone take this kind of counterparty risk to buy calls for a little bit more leverage, they will just buy the underlying bitcoins and be done with it.
This is just scratching the surface if anyone want to do a real bitcoin options exchange not just a few contracts posted on the forum, it's not very feasible without significant funding and experience behind it.