Topic: XMR futures/options OTC thread - page 6. (Read 12759 times)

In the very beginning, I'd like to issue PUT options. They work such that the buyer has a right, but no obligation, to sell a certain amount of XMR at a fixed price in BTC, and the right in valid for a certain time, and if it is not exercised, it expires.

How would you benefit from buying the PUTs. Example. You own 10000 XMR and in your opinion, it's time to make it or break it. The price is 0.0039, and you think it will either crash or boom in the near future. But if it crashes, you can not actively monitor it, and don't know if the crash is final or a bear trap, and selling such an amount would mean huge slippage. So there is no practical way to cut the losses, until it is too late. (If it goes up, all is naturally fine.)

If you buy full coverage for the sum in 0.0035-30day-PUTs, it will cost about 0.0004, paid upfront. If the 10000 XMR is all you have, you will have to sell 1000 XMR to pay the premium, and you consequently have 10% less upside. But as for the downside, which previously was potentially 100%, you have now hedged up to 90%! If the price drops 10%, you start to benefit from using the PUT, and there is no penalty for waiting longer. You always get to sell at exactly 0.0035, no matter if the exchange price is 0.003 or 0.001.

What if you are a speculator who has secret information of Monero's demise? Buying PUTs is a risk free way to take advantage. If Monero price is halved as a result of your information, you reap 3-4x gains. You don't need to own XMR to buy the PUT. Prior to exercising, you can just buy them cheaply at the exchange and exercise then at the higher strike price.

I am ready to offer different maturities (30-60-90 days). Note, the contract is not a CFD "contract-for-difference". This is an actual obligation by me to buy your moneros at a fixed price if you so request, any time until the expiration of the contract.

Hi! I wanted to start this thread because I am interested in having derivatives for the XMR/BTC rate. That the trading pair is both crypto, should make it much easier than dealing with the legacy system fiat currency. Please use this for discussion of the subject, as well as actual structured offers to conduct trade.