## options

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### tl; dr

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* **options can be used to speculate on the future price and volatility of an asset, and to manage risks in a portfolio.**
* 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).
* options contracts contain the following information:
  - nature of the right: from the option buyers’ perspective, to buy (call) or sell (put) the asset.
  - specification and quantity of underlying asset (e.g., 1 BTC).
  - strike (or exercise) price: the price paid or received for the asset if the option is exercised. 
  - expiration date: the last date the option can be exercised.
  - rules for exercise and settlement.

<br>
<img width="400" src="https://user-images.githubusercontent.com/126520850/227076376-c6f147e9-42b5-4e37-bb18-d3fdfddc63cb.png">

<img width="300"  src="https://user-images.githubusercontent.com/126520850/227075830-3f2b9732-e613-41a6-8381-86dff0f897ca.png">



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### protocols

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#### [thales](https://thalesmarket.io/)



* decentralized binary options protocol that a group of Synthetix community members spun in 2020.
* if held until expiry, binary options have only two payoff possibilities: a predetermined amount of profit or nothing.
* relies on Synthetix's sUSD stablecoin for minting its binary options tokens and as the platform's unit of account.

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#### [lyra.finance](https://www.lyra.finance/)

* chains: arbitrum, optimism, ethereum
* decentralized options trading protocol powered by a specialized AMM system.
* it uses synthetix's sUSD stablecoin as its exclusive quote asset, so traders pay for opening long positions or closing short positions with sUSD.
* uses synthetix as a one-stop protocol for getting long and short exposure on its markets' base assets (delta hedging).
* [guide to trade on lyra](https://newsletter.banklesshq.com/p/a-guide-to-options-on-lyra)

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#### [hegic](https://www.hegic.co/app#/arbitrum/trade/new)

* chains: arbitrum, ethereum


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#### [siren](https://siren.xyz/)

* chain: polygon

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#### [whiteheart](https://www.whiteheart.finance/#/swap-wrap/wrap?from=WBTC&to=WHBTC)

* chains: ethereum

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#### [premia](https://app.premia.finance/options)

* chains: ethereum, arbitrum, fantom, optimism

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#### [kwenta](https://mirror.xyz/kwenta.eth/nPp4epdHb1OZlta1YXfPVeBNL89P_jpQGgruC9daOdc)


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### external resources

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* [options for beginners, by defi educations](https://defieducation.substack.com/p/options-for-beginners)