Topic: Offer BTC Options - page 2. (Read 3551 times)
op updated
i agree, but you cannot be a market maker without a way to short the btc in order to hedge the put contracts written, it's suicide to sell naked puts on btc. Just having calls like what the OP did doesnt do much. So until there is a way to short btc, you wont see any kind of real option exchanges for btc.
MMs will come when they have a place to come to 
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$30 which is ~30% premium for a 30 day contract? in the real option market people will only pay those kind of price if they expect a blackswan event like the lehman collapse, but given btc's volatility it may be justified except you have no hedge.
No its not justified, but I would have to charge that and thats why I dont offer put options. The extra of $15 wouldnt go into my pocket, I would have to pay them as fee to short the btc ("loan" the btc which I then sell to cover the option).
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So i guess the plan is to keep pocketing the premium on those naked puts until a time when(if) btc crashes and blowup your account then default on the contracts. Not a bad gig, many sell side funds have done just that on the street
All my options are backed up by BTC. I wouldnt sell a 5 BTC call option without having those 5 BTC in my wallet, otherwise a price jump would indeed put me in trouble. I always state in my op which option liabilities I have so everyone can decide if they trust me to keep my word.
Even if I would sell "uncovered" options (which I dont do) I am very liquid. As you can see in my loan thread (check op for the link) I can cover all liabilites up to $6000 only with the loans I have outstanding (im the lender, not the borrower!) without problems
I can offer put options too, but the fee would be much higher like extra 0.5% of the market value per day to cover the interest. So a 10 days put option would cost $5 extra in fee and thats only 10 days. a 30 days put option would cost additional $15...
and therfor put options would be far less attractive...
and therfor put options would be far less attractive...
so for at the money puts you are looking to charge $30 which is ~30% premium for a 30 day contract? in the real option market people will only pay those kind of price if they expect a blackswan event like the lehman collapse, but given btc's volatility it may be justified except you have no hedge. So i guess the plan is to keep pocketing the premium on those naked puts until a time when(if) btc crashes and blowup your account then default on the contracts. Not a bad gig, many sell side funds have done just that on the street
I can offer put options too, but the fee would be much higher like extra 0.5% of the market value per day to cover the interest. So a 10 days put option would cost $5 extra in fee and thats only 10 days. a 30 days put option would cost additional $15...
and therfor put options would be far less attractive...
and therfor put options would be far less attractive...
We really need a better option market around here.
i agree, but you cannot be a market maker without a way to short the btc in order to hedge the put contracts written, it's suicide to sell naked puts on btc. Just having calls like what the OP did doesnt do much. So until there is a way to short btc, you wont see any kind of real option exchanges for btc.
bump
op updated
op updated with new option
I will transfer the difference in BTC.
Lets assume the price is at $120 then I would transfer you 5 x ($120 - $110) = $50 = $50 / $120 per BTC = 0.4167 BTC
All options sold for now but I leave this thread open. Leave me a message and respond here for a public timestamp in case you want to execute this option.
Lets assume the price is at $120 then I would transfer you 5 x ($120 - $110) = $50 = $50 / $120 per BTC = 0.4167 BTC
All options sold for now but I leave this thread open. Leave me a message and respond here for a public timestamp in case you want to execute this option.
OK, it's done:
http://blockchain.info/tx/cb6c2e007654ad9b5be1348299c8b9dbbae617239915392b34d3272ed3580c3b
Question for clarification: if the price goes above $110 and I decide to exercise the option, will you want me to actually buy 5 bitcoins from you at $110 or will you just buy back the option, that is to say, give me the difference (btc price at exercise - $110).
I haven't done a bitcoin option before, so please correct me if I'm misunderstanding something.
Someone should really start a proper future/options exchange for bitcoin. I'm sure there would be a lot of interest.
http://blockchain.info/tx/cb6c2e007654ad9b5be1348299c8b9dbbae617239915392b34d3272ed3580c3b
Question for clarification: if the price goes above $110 and I decide to exercise the option, will you want me to actually buy 5 bitcoins from you at $110 or will you just buy back the option, that is to say, give me the difference (btc price at exercise - $110).
I haven't done a bitcoin option before, so please correct me if I'm misunderstanding something.
Someone should really start a proper future/options exchange for bitcoin. I'm sure there would be a lot of interest.
$110 strike @ $10 fee 10 days, max 5 BTC
with a price right now of 95 USD / BTC transfer 0.5263 BTC within the next 2 hours to:
1BseFPFvft95efsH744pJHGssJryVAuh1K
Option expires June 19th 11:00 CET
with a price right now of 95 USD / BTC transfer 0.5263 BTC within the next 2 hours to:
1BseFPFvft95efsH744pJHGssJryVAuh1K
Option expires June 19th 11:00 CET
Ok, if payment will be in btc -
I will take 5x $110/btc strike (10 days) at 0.1BTC fee ea
I will take 5x $110/btc strike (10 days) at 0.1BTC fee ea
Sorry, cant do that at least not with a 30 days period. In the last 7 days we witnessed a pricedrop down from 120 and 14 days ago we were at 140.
I could offer
$110 strike @ $10 fee 10 days, max 5 BTC
$105 strike @ $15 fee 15 days, max 5 BTC
There arent any MtGox USD codes so I accept payments in BTC equivalent.
I could offer
$110 strike @ $10 fee 10 days, max 5 BTC
$105 strike @ $15 fee 15 days, max 5 BTC
There arent any MtGox USD codes so I accept payments in BTC equivalent.
How about selling those $110/btc options for $10 fee?
I would take 5 at that price.
When you demarcate the option price in $ do you take payment in $ or in btc equivalent?
I would take 5 at that price.
When you demarcate the option price in $ do you take payment in $ or in btc equivalent?
Is there no existing exchange for btc options trading?
No good one so far.
Anybody want to sell some put options? Is there no existing exchange for btc options trading?
Update with another option, only 5 BTC this time available
thanks DeathAndTaxes (soon your post #10k) and yes you are right mrkent.
Ok, all sold.
Ok, all sold.
We really need a better option market around here.
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