Just wanted to share my 2 cents about my experience on trading options on Cryptocurrency.
Platform that I used:
@DeribitExchange @HegicOptions @opyn_ @AuctusProject @fin_nexus
Here's a long thread on all these platforms on their pros and cons.
Platform that I used:
@DeribitExchange @HegicOptions @opyn_ @AuctusProject @fin_nexus
Here's a long thread on all these platforms on their pros and cons.
https://twitter.com/mewn21/status/1345677403163648000
NOT A FINANCIAL ADVICE, I AM JUST A DEGEN BUYING ALL THE CHEAP OPTIONS, HERE'S MY HONEST OPINION
This tweet are just summary, you can read the full article here
notion.so/Option-74b7af1…
This tweet are just summary, you can read the full article here
notion.so/Option-74b7af1…
Before we start let's talk about how I trade options:
1. Hedging with PUT options
2. Naked CALL to enjoy no liquidation long, push the price until ITM and do something with it such as delta hedging, selling the options or even exercising it.
1. Hedging with PUT options
2. Naked CALL to enjoy no liquidation long, push the price until ITM and do something with it such as delta hedging, selling the options or even exercising it.
Deribit (1/2) @DeribitExchange
Deribit is a centralized options platform, I had been using it for a while. Deribit is european options.
Pros:
- Liquid
- has Secondary market
- lots of choices of strike date and price
- Main place for price discovery
Deribit is a centralized options platform, I had been using it for a while. Deribit is european options.
Pros:
- Liquid
- has Secondary market
- lots of choices of strike date and price
- Main place for price discovery
Deribit (2/2)
Cons:
- Require deposit of native assets, e.g. BTC, ETH
- Wide bid ask spread when ITM
- Require KYC
Cons:
- Require deposit of native assets, e.g. BTC, ETH
- Wide bid ask spread when ITM
- Require KYC
Hegic (1/3) @HegicOptions
Hegic make use of a single liquidity pool to write both call and put options for a cryptocurrency, right now they support ETH and wBTC. Really innovative approach to solved the issue of illiquid market in options.
Hegic make use of a single liquidity pool to write both call and put options for a cryptocurrency, right now they support ETH and wBTC. Really innovative approach to solved the issue of illiquid market in options.
Hegic (2/3)
Pros:
- Single liquidity pool
- Support dynamic strike date and strike price
Cons:
- Option are not tradable yet
- IV is done offchain and less frequent, but they plan to moved to @chainlink
- LP of Hegic will get rekt without proper risk management
Pros:
- Single liquidity pool
- Support dynamic strike date and strike price
Cons:
- Option are not tradable yet
- IV is done offchain and less frequent, but they plan to moved to @chainlink
- LP of Hegic will get rekt without proper risk management
Hegic (3/3)
I've written a this note about providing LP on hegic few weeks back
notion.so/Hegic-6ef317d6…
I've written a this note about providing LP on hegic few weeks back
notion.so/Hegic-6ef317d6…
Opyn (1/3) @opyn_
Opyn just released V2, but I will just share my thoughts on V1. Opyn is an american options platform.
Opyn just released V2, but I will just share my thoughts on V1. Opyn is an american options platform.
Opyn (2/3)
Pros (V1)
- Support YFI, UNI, DPI, Compound DAI
- ERC20 tokenize of the options, making it traddable
- Secondary market is created via Uniswap V1
Cons (V1)
- Some options has no liquidity
- Options will be mispriced sometimes
Pros (V1)
- Support YFI, UNI, DPI, Compound DAI
- ERC20 tokenize of the options, making it traddable
- Secondary market is created via Uniswap V1
Cons (V1)
- Some options has no liquidity
- Options will be mispriced sometimes
Opyn (3/3)
I haven't have a chance to try out V2, but based on the UI, it's a lot like Deribit with the bid-ask-spread concept.
I haven't have a chance to try out V2, but based on the UI, it's a lot like Deribit with the bid-ask-spread concept.
Auctus (1/2) @AuctusProject
Auctus is a decentralized options protocol. I didn't use Auctus, cuz there is not much options of my choice here. Auctus is an american options.
Auctus is a decentralized options protocol. I didn't use Auctus, cuz there is not much options of my choice here. Auctus is an american options.
Auctus (2/2)
Pros
- Support OTC options, which means anyone can create an options
- Options are being wrapped into ERC20
Cons
- OTC Options require some marketing effort in order to sell the options
Pros
- Support OTC options, which means anyone can create an options
- Options are being wrapped into ERC20
Cons
- OTC Options require some marketing effort in order to sell the options
FinNexus (1/2) @fin_nexus
FinNexus has the same concept as Hegic, where they are using a single liquidity pool. FinNexus is an american options.
FinNexus has the same concept as Hegic, where they are using a single liquidity pool. FinNexus is an american options.
FinNexus (2/2)
Pros:
- Support alts like MKR, SNX and LINK.
Cons:
- Premium are quite expensive.
- No secondary market, can only exercise it.
- If buying alts like SNX, LINK or MKR, the underlining assets might need to move around 10-20% in order to break even (30 days option)
Pros:
- Support alts like MKR, SNX and LINK.
Cons:
- Premium are quite expensive.
- No secondary market, can only exercise it.
- If buying alts like SNX, LINK or MKR, the underlining assets might need to move around 10-20% in order to break even (30 days option)
End.
Here are my suggestions on places to buy options for each crypto.
$BTC: @DeribitExchange
$ETH: @DeribitExchange
$UNI: @opyn_ V1
$YFI: @opyn_ V1
$DPI: @opyn_ V1
$SNX: @fin_nexus
$LINK: @fin_nexus
$MKR: @fin_nexus
$WNXM: @AuctusProject
Here are my suggestions on places to buy options for each crypto.
$BTC: @DeribitExchange
$ETH: @DeribitExchange
$UNI: @opyn_ V1
$YFI: @opyn_ V1
$DPI: @opyn_ V1
$SNX: @fin_nexus
$LINK: @fin_nexus
$MKR: @fin_nexus
$WNXM: @AuctusProject
https://twitter.com/FelixOHartmann/status/1338681505933979649
Maybe @PremiaFinance can solve all these? idk probably psyops
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