A SHORT Thread on @ThetaNuts
Let's talk about Options Trading on #Terra #LUNA.
Learning this, when 99% of the space hasn't inherently puts you at an advantage.
/THREAD 🧵
Let's talk about Options Trading on #Terra #LUNA.
Learning this, when 99% of the space hasn't inherently puts you at an advantage.
/THREAD 🧵
If you are not clear on exactly what options are,
Don't worry anon, I shall simplify these concepts for you.
Then we will discuss options on Terra, and why this is so interesting.
/1
Don't worry anon, I shall simplify these concepts for you.
Then we will discuss options on Terra, and why this is so interesting.
/1
An options contract offers the buyer the opportunity to buy or sell depending on the type of contract they hold—the underlying asset.
Call options and put options form the basis for a wide range of option strategies.
/2
Call options and put options form the basis for a wide range of option strategies.
/2
Investors use options to hedge or reduce the risk exposure of their portfolios.
In a bear market, buying put options is a straightforward bear strategy with low risk/high reward potential.
What is a put option?
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In a bear market, buying put options is a straightforward bear strategy with low risk/high reward potential.
What is a put option?
/3
A put option is a specified amount of an underlying security at a predetermined price within a specified time frame.
Put options increase in value as the underlying asset falls in price, as volatility of the underlying asset price increases, and as interest rates decline.
/4
Put options increase in value as the underlying asset falls in price, as volatility of the underlying asset price increases, and as interest rates decline.
/4
So now that we've briefly familiarized ourself with options.
Let's talk about #ThetaNuts and its' unique product.
Currently there is no token available.
/5
Let's talk about #ThetaNuts and its' unique product.
Currently there is no token available.
/5
The weakness of DeFi 1.0 is that there are unsustainable yields.
There is greater focus on ponzinomics which is not sustainable.
To carry us into DeFi 2.0 we need sustainable yields.
DeFi will face pressure this year as TVL increases.
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There is greater focus on ponzinomics which is not sustainable.
To carry us into DeFi 2.0 we need sustainable yields.
DeFi will face pressure this year as TVL increases.
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@cronos_chain will easily onboard Theta Nuts with a wide variety of assets.
Traditional finance cannot solve these trading options in a decentralzed manner.
You can trade options with any amount as long as you are willing to pay gas fees.
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Traditional finance cannot solve these trading options in a decentralzed manner.
You can trade options with any amount as long as you are willing to pay gas fees.
/7
People are thinking about putting their strategies and businesses on chain. By putting their own protocols on chain.
More vaults are coming up. Currently strikes right now are 10% from current expiry.
You can deposit UST, get premiums in UST. Don't need to swap out yields.
/8
More vaults are coming up. Currently strikes right now are 10% from current expiry.
You can deposit UST, get premiums in UST. Don't need to swap out yields.
/8
The team is planning to launch their token model in Q1 of 2022:
-Covered calls
-Covered puts
-More options for the system
Yield is not from a token yield farming model.
They created a very sustainable model whereby people can get yield efficiently and sustainably.
/9
-Covered calls
-Covered puts
-More options for the system
Yield is not from a token yield farming model.
They created a very sustainable model whereby people can get yield efficiently and sustainably.
/9
No previous #Luna options markets in the public.
Institutions need market structure and maturity, and need an active derivatives market which options are a part of.
As a market matures, derivatives such as options, forwards and futures will naturally develop to meet more..
/10
Institutions need market structure and maturity, and need an active derivatives market which options are a part of.
As a market matures, derivatives such as options, forwards and futures will naturally develop to meet more..
/10
Sophisticated demands and to promote liquidity.
Structured products gives one the ability to perform more specific strategies to meet a specific risk-return objective.
They are in talks with regulations and institutions to pass licences forward.
/11
Structured products gives one the ability to perform more specific strategies to meet a specific risk-return objective.
They are in talks with regulations and institutions to pass licences forward.
/11
Here are some resources I found useful to learn further.
open.spotify.com/episode/2kQQFg…
thetanuts.medium.com
open.spotify.com/episode/2kQQFg…
thetanuts.medium.com
I hope you enjoyed this thread.
If you like to read threads like these, please give me a follow:
@crypto8fi
And if you like to read longer-form content around investing safely, check out my Medium linked below:
medium.com/@crypto8fi
If you like to read threads like these, please give me a follow:
@crypto8fi
And if you like to read longer-form content around investing safely, check out my Medium linked below:
medium.com/@crypto8fi
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