Topic: Reverse auction: Buying lookback call option on BTC with floating strike, 1mth - page 2. (Read 2568 times)
January 04, 2012, 06:59:31 AM
Why not the lowest daily weighted average for the period? Should be approx the same as the lowest value, after odd spikes are averaged out. And when you say non-binding does that mean either of the parties can just decide to not go through with the deal at maturation?
January 04, 2012, 06:41:34 AM
How will you manage your counter-party risk? It has real potential to blow up in the face of whoever bids on this.
I'll look at WoT ratings and make a decision based on price/rating.
Remember, this is NONBINDING so please bid a serious amount
It's hard to know what a serious amount is. The potential risk is high and hard to price or hedge. If the price spikes down to 50 cents for a millisecond and then back to $5, I'd be losing $9000 on the option, so the premium needs to compensate me for the risk.
January 03, 2012, 09:53:35 PM
How will you manage your counter-party risk? It has real potential to blow up in the face of whoever bids on this.
I'll look at WoT ratings and make a decision based on price/rating.
Remember, this is NONBINDING so please bid a serious amount
January 03, 2012, 09:51:45 PM
How will you manage your counter-party risk? It has real potential to blow up in the face of whoever bids on this.
$9000.
$9000.
January 03, 2012, 08:58:45 PM
How is the lowest price determined? How will you be paying?
Lowest price is determined by the lowest of the mtgox daily lows; you will be paid with mtgoxUSD since it's instant, easy and non-reversible.
January 03, 2012, 07:12:08 PM
How is the lowest price determined? How will you be paying?
January 03, 2012, 01:26:08 PM
$9001
January 03, 2012, 01:21:02 PM
This auction ends on 1/5/2012 11:59 PM EST.
January 03, 2012, 01:20:10 PM
This auction is nonbinding.
I am buying the right to buy $1000 worth of BTC at the optimal price from 1/5/2012 to 2/5/2012 (meaning that I will buy at the lowest price in that time period). This option will mature on 2/5/2012, and is only exercisable on that day.
This auction is a reverse auction; there is no starting bid or minimum increment. You can bid whatever you want since it's nonbinding. I'm simply looking for a price estimate, and will consider any good offer.
I am buying the right to buy $1000 worth of BTC at the optimal price from 1/5/2012 to 2/5/2012 (meaning that I will buy at the lowest price in that time period). This option will mature on 2/5/2012, and is only exercisable on that day.
This auction is a reverse auction; there is no starting bid or minimum increment. You can bid whatever you want since it's nonbinding. I'm simply looking for a price estimate, and will consider any good offer.
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