mirror of
https://github.com/autistic-symposium/mev-toolkit.git
synced 2025-05-28 03:03:30 -04:00
Update options.md
This commit is contained in:
parent
f1b3f1b39d
commit
f2eda18e24
1 changed files with 7 additions and 0 deletions
|
@ -9,6 +9,13 @@
|
|||
* options can be thought of as "insurance-like" contracts where one pays a premium upfront. profits come from "disaster events", with **capped losses** and **unlimited upsides**.
|
||||
* purchasers of options receive the **right** to buy or sell the underlying asset at a predetermined **strike price**. **option chains** list **calls** (ability to buy the asset) and **puts** (ability to sell the asset) for a given expiration across a variety of **strikes**.
|
||||
* options also gives leverage by chasing cheaper premiums (e.g. shortening expirations).
|
||||
* buy (call) vs. sell (put):
|
||||
|
||||
<br>
|
||||
|
||||
<img width="300" src="https://user-images.githubusercontent.com/126520850/227075830-3f2b9732-e613-41a6-8381-86dff0f897ca.png">
|
||||
|
||||
|
||||
|
||||
<br>
|
||||
|
||||
|
|
Loading…
Add table
Add a link
Reference in a new issue