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94 lines
2.9 KiB
Markdown
94 lines
2.9 KiB
Markdown
## options
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<br>
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### tl; dr
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<br>
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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.**
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* 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**.
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* 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**.
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* options also gives leverage by chasing cheaper premiums (e.g. shortening expirations).
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* options contracts contain the following information:
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- nature of the right: from the option buyers’ perspective, to buy (call) or sell (put) the asset.
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- specification and quantity of underlying asset (e.g., 1 BTC).
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- strike (or exercise) price: the price paid or received for the asset if the option is exercised.
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- expiration date: the last date the option can be exercised.
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- rules for exercise and settlement.
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<br>
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<img width="400" src="https://user-images.githubusercontent.com/126520850/227076376-c6f147e9-42b5-4e37-bb18-d3fdfddc63cb.png">
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<img width="300" src="https://user-images.githubusercontent.com/126520850/227075830-3f2b9732-e613-41a6-8381-86dff0f897ca.png">
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<br>
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---
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### protocols
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<br>
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#### [thales](https://thalesmarket.io/)
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* decentralized binary options protocol that a group of Synthetix community members spun in 2020.
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* if held until expiry, binary options have only two payoff possibilities: a predetermined amount of profit or nothing.
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* relies on Synthetix's sUSD stablecoin for minting its binary options tokens and as the platform's unit of account.
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<br>
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#### [lyra.finance](https://www.lyra.finance/)
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* chains: arbitrum, optimism, ethereum
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* decentralized options trading protocol powered by a specialized AMM system.
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* it uses synthetix's sUSD stablecoin as its exclusive quote asset, so traders pay for opening long positions or closing short positions with sUSD.
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* uses synthetix as a one-stop protocol for getting long and short exposure on its markets' base assets (delta hedging).
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* [guide to trade on lyra](https://newsletter.banklesshq.com/p/a-guide-to-options-on-lyra)
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<br>
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#### [hegic](https://www.hegic.co/app#/arbitrum/trade/new)
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* chains: arbitrum, ethereum
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<br>
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#### [siren](https://siren.xyz/)
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* chain: polygon
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<br>
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#### [whiteheart](https://www.whiteheart.finance/#/swap-wrap/wrap?from=WBTC&to=WHBTC)
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* chains: ethereum
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<br>
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#### [premia](https://app.premia.finance/options)
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* chains: ethereum, arbitrum, fantom, optimism
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<br>
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#### [kwenta](https://mirror.xyz/kwenta.eth/nPp4epdHb1OZlta1YXfPVeBNL89P_jpQGgruC9daOdc)
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<br>
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---
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### external resources
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<br>
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* [options for beginners, by defi educations](https://defieducation.substack.com/p/options-for-beginners)
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