[CALL OPTIONS] IceDrill 250,000 shares 30 days CALLS @ 0.001 strike price

Gyom

donator

Activity: 83

Merit: 10

Quote from: Rannasha on October 01, 2013, 01:24:45 PM

Quote from: utens on October 01, 2013, 01:16:20 PM

Hello, i might be interested but still a newbie about options, can u please define what this all mean?
To be 100% sure of what i might be doing

If you buy the options (or part of them), you have the right to purchase a number of shares of IceDrill up to the number of options you own, for 0.001 BTC per share (the strike price). This right lasts until the end of the month, at which point any unused options disappear. At any point between purchasing the options and their expiration, you can decide to exercise part or all of your options, pay 0.001 per share and receive that many shares.

If you purchase these options, you pay 0.0004 BTC per option. This means that you will profit if the price of IceDrill goes above 0.0014. If you decide not to exercise your options, they will expire at the end of the month and you've lost the 0.0004 per option. If you exercise the options, you've paid a total of 0.0014 per share.

Options can be traded through BitFunder, where you can buy part or all of the options available in this offer and exercise or resell them at will.

Couldn't have said it better.

Rannasha

hero member

Activity: 728

Merit: 500

Quote from: ?? on ??

It takes 77,245 shares to reach .0014. Seems like it could easy to manipulate the share price. It would take about 100 BTC ($13,000 USD) to do so. I don't know enough about options to know if this is useful information.

It's not enough to push the asks up to 0.0014, you need bids to reach at least that amount. So you'll need to push the price up considerably more to trick people into putting high enough bids up for you to dump on. And the dumping will bring the price right back down again. It's not trivial to manipulate the price up enough to make use of this option offer, unless there are external reasons for the share price to go up (such as good news from the issuer or something like that).

Rannasha

hero member

Activity: 728

Merit: 500

Quote from: utens on October 01, 2013, 01:16:20 PM

Hello, i might be interested but still a newbie about options, can u please define what this all mean?
To be 100% sure of what i might be doing

If you buy the options (or part of them), you have the right to purchase a number of shares of IceDrill up to the number of options you own, for 0.001 BTC per share (the strike price). This right lasts until the end of the month, at which point any unused options disappear. At any point between purchasing the options and their expiration, you can decide to exercise part or all of your options, pay 0.001 per share and receive that many shares.

If you purchase these options, you pay 0.0004 BTC per option. This means that you will profit if the price of IceDrill goes above 0.0014. If you decide not to exercise your options, they will expire at the end of the month and you've lost the 0.0004 per option. If you exercise the options, you've paid a total of 0.0014 per share.

Options can be traded through BitFunder, where you can buy part or all of the options available in this offer and exercise or resell them at will.

utens

full member

Activity: 163

Merit: 100

Hello, i might be interested but still a newbie about options, can u please define what this all mean?
To be 100% sure of what i might be doing

Gyom

donator

Activity: 83

Merit: 10

Thanks! Also price for the option is 0.0004, thanks for making me realize I had made a mistake. :-)

Rannasha

hero member

Activity: 728

Merit: 500

Perhaps add the relevant bit of information of the premium being 0.0004 per unit.

Gyom

donator

Activity: 83

Merit: 10

I'm selling 250,000 call options at a 0.001 / share strike price with 30 days expiration on BitFunder for IceDrill.

https://bitfunder.com/asset/IceDrill.ASIC

Edit : Option price is 0.0004 per share.

Topic: [CALL OPTIONS] IceDrill 250,000 shares 30 days CALLS @ 0.001 strike price (Read 996 times)