Topic: Offer BTC Options (Read 3554 times)
bump
bump
op updated
update
bump
I started to offer put options yesterday and didnt sell one so far while two call options has been sold so far... does this answer your "How is it working out so far?"
Check the op to check my liquidity. I always limit the amount I want to "risk" by the amount of BTC i sell as option so I can pay out in all cases .
Check the op to check my liquidity. I always limit the amount I want to "risk" by the amount of BTC i sell as option so I can pay out in all cases .
How is it working out so far?
How can you trust people to offer such options?
How can you trust people to offer such options?
due to the replies here and some PMs I offer some put options too.
due to the replies here and some PMs I offer some put options too.
op updated, 10 more BTC available
Then I would buy some of my options myself 
Can I do $110 for 30 days for 0.5 BTC, with a $5 fee (because of the small amount)?
Sorry, but the fee doesnt scale at all with the amount... and for negotiation the fee (I guess you meant $5 per BTC) is far too small and away from my initial offer of $20 per BTC. You have to understand that I will have to cover the call option with BTC. So if the BTC price drops by more than $5, then I end up with a USD loss. In the last 30 days the price has gone down from ~$130 to now $95, so I guess everyone buying a call option for just $20 /$25 has a good chance to make some nice profit with this deal while I still have a good risk to lose USD if the price drops by another $35...
Can you help me understand what the options are in-depth?
Im not sure how to explain them better than already done in here by DeathAndTaxes for example:
can you explain what those options mean?(sorry for being a noob)
[For a call options $135 strike @ $30 fee 3 months, max 10 BTC] it means you can pay $30 per BTC and have the right but not obligation to purchase 1 BTC @ $135 anytime in the next three months. Obviously since you are paying a $30 premium your break even point is $165. If you believe that BTC exchange rate will exceed $165 in the next three months you would profit.
If you want something more detailed you can check out wikipedia:
The call option I offer is described in here: http://en.wikipedia.org/wiki/Call_option
The counterpart of a call option, the put option: http://en.wikipedia.org/wiki/Put_option
Can I do $110 for 30 days for 0.5 BTC, with a $5 fee (because of the small amount)?
Sorry, but the fee doesnt scale at all with the amount... and for negotiation the fee (I guess you meant $5 per BTC) is far too small and away from my initial offer of $20 per BTC. You have to understand that I will have to cover the call option with BTC. So if the BTC price drops by more than $5, then I end up with a USD loss. In the last 30 days the price has gone down from ~$130 to now $95, so I guess everyone buying a call option for just $20 /$25 has a good chance to make some nice profit with this deal while I still have a good risk to lose USD if the price drops by another $35...
Can you help me understand what the options are in-depth?
Im not sure how to explain them better than already done in here by DeathAndTaxes for example:
can you explain what those options mean?(sorry for being a noob)
[For a call options $135 strike @ $30 fee 3 months, max 10 BTC] it means you can pay $30 per BTC and have the right but not obligation to purchase 1 BTC @ $135 anytime in the next three months. Obviously since you are paying a $30 premium your break even point is $165. If you believe that BTC exchange rate will exceed $165 in the next three months you would profit.
If you want something more detailed you can check out wikipedia:
The call option I offer is described in here: http://en.wikipedia.org/wiki/Call_option
The counterpart of a call option, the put option: http://en.wikipedia.org/wiki/Put_option
Can you help me understand what the options are in-depth?
I am trying to wrap my head around it.. Thanks in advance!
I am trying to wrap my head around it.. Thanks in advance!
Can I do $110 for 30 days for 0.5 BTC, with a $5 fee (because of the small amount)?
bump with new options
are you offering put options | only one way is more just selling BTC | lol have huge buyer here...thanks
I only understood "are you offering put options". Dont know what the middle part should mean.
No Im not offering put options. I dont have a cheap way to short BTC so the fee would be so high that it would be unattractive for you to buy them.
If your buyer wants some put options and hold right now some BTC, tell him to sell his BTC and buy call options. In case the price drops enough he made a nice profit because he sold his btc earlier high. In case the price rises enough he makes a nice profit with the call options.
And just to mention, I dont have the funds to "satisfy" a huge buyers demand.
are you offering put options only one way is more just selling BTC lol have huge buyer here...thanks
Good luck with it.
still 5 available
hm looks like the market for options is pretty thin or maybe they just dont find my thread... noone interested?
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).
Quote
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.
can you explain what those options mean?(sorry for being a noob)
It means you can pay $30 per BTC and have the right but not obligation to purchase 1 BTC @ $135 anytime in the next three months. Obviously since you are paying a $30 premium your break even point is $165. If you believe that BTC exchange rate will exceed $165 in the next three months you would profit.
can you explain what those options mean?(sorry for being a noob)
Offerig Bitcoin options:
1) call $95 strike @ $25 fee, 30 days max 10 BTC
2) call $100 strike @ $20 fee, 30 days, max 10 BTC
3) call $100 strike @ $15 fee, 15 days, max 10 BTC
4) put $75 strike @ $25 fee, 30 days max 20 BTC
... also open for proposals
Rules:
- No partial option execution possible
My reputation is outstanding:
Over $6000 in Amazon Gift Codes: https://bitcointalksearch.org/topic/btc-on-amazoncom-buy-giftcards-with-your-btc-10-discount-62361
Over 700 BTC bought with paypal / paxum https://bitcointalksearch.org/topic/have-paypal-paxum-need-btc-or-lr-1000-96578
Many funds lent to other members https://bitcointalksearch.org/topic/eisenhowers-lending-0-available-97764
1) call $95 strike @ $25 fee, 30 days max 10 BTC
2) call $100 strike @ $20 fee, 30 days, max 10 BTC
3) call $100 strike @ $15 fee, 15 days, max 10 BTC
4) put $75 strike @ $25 fee, 30 days max 20 BTC
... also open for proposals
Rules:
- No partial option execution possible
My reputation is outstanding:
Over $6000 in Amazon Gift Codes: https://bitcointalksearch.org/topic/btc-on-amazoncom-buy-giftcards-with-your-btc-10-discount-62361
Over 700 BTC bought with paypal / paxum https://bitcointalksearch.org/topic/have-paypal-paxum-need-btc-or-lr-1000-96578
Many funds lent to other members https://bitcointalksearch.org/topic/eisenhowers-lending-0-available-97764
Code:
Options sold:
anonymous $135 strike 10 BTC, expires Sept 05th 12:00 CET
anonymous $135 strike 10 BTC, expires Sept 05th 12:00 CET
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