diff --git a/MEV_and_trading/derivatives/options.md b/MEV_and_trading/derivatives/options.md index 77a9252..dcc8df9 100644 --- a/MEV_and_trading/derivatives/options.md +++ b/MEV_and_trading/derivatives/options.md @@ -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): + +
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