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Zeta ζ

@ZetaMarkets

Oct 11

1/ What are ratio back spreads and what can they do for you? 🧵⤵️

A ratio back spread is a long vol options strategy with an alluring risk-reward profile.

The strategy involves selling and buying options (of the same class) with the same expiry at ratios such as 1:2 or 2:3.

2/ The strike price of the long options is further out-of-the-money (OTM) than the strike price of the short options.

Key benefits of the strategy include:

– Unlimited profit

– Defined risk

– Bidirectional profit potential (if established for a net credit)

– Low-cost entry

3/ Whether or not the strategy is opened for a net debit or credit depends on various entry parameters, including:

– Spread width

– Days to expiration (DTE)

– Volatility skew

– Ratio of short to long options (i.e., 1:2 or 2:3)

Read 22 tweets

Zeta ζ

@ZetaMarkets

May 26

1/ Long SOL but want cost-effective downside protection?

Let us introduce you to a risk reversal trade known as the Protective Collar — aka Hedge Wrapper 🌳🎁

@GenesisVol

2/ Looking at the volatility smile on Zeta options in the @GenesisVol app — you see downside protection is expensive 💸

@solana

3/ You’ve already contacted @solana devs and there’s nothing they can do to reduce the premium on the OTM put you would like to purchase.

Back to the basement to dwell?

Not so fast. It’s time to take matters into your own hands 👊

Read 4 tweets

Zeta ζ

@ZetaMarkets

Dec 31, 2021

1/n

Last day of 2021 feels like a good time for this...

2022 predictions for DeFi ! 👇🧵

@PythNetwork

2/ Prediction 1: The year of composability

Permissionless innovation will come to the fore. Essential primitives are largely in place for all CeFi products to be built: price oracles (@PythNetwork), settlement layers, credit & lending markets (@solendprotocol @JetProtocol)

@Katana_HQ

3/

The interoperability to be had between these primitives as well as via perps, futures, options is huge - and also in the vertical direction with vaults (i.e. @ribbon_finance, @Katana_HQ, @friktion_labs , @Tap_Finance, @chest_finance etc...)

Read 12 tweets

Zeta ζ

@ZetaMarkets

Oct 11, 2021

@projectserum

1) Today, we are thrilled to announce Zeta’s official partnership with @projectserum🔥We’ve joined forces with the project at the absolute forefront of DeFi development to bring fast, liquid derivatives to the Solana ecosystem.
Thread below ⬇️

2) When Zeta was deciding which chain to implement its vision for fast, decentralized, capital-efficient derivatives – we landed on Solana due to speed, efficiency, and a first-class orderbook primitive called Serum.

3) Serum is a world-class project on Solana. The team has delivered the Anchor framework, swap primitives, and best of all – Serum has pioneered a first-class on-chain orderbook.
Zeta is looking to extend this, and create the world's first on-chain orderbook-based derivative DEX

Read 9 tweets

Zeta ζ

@ZetaMarkets

Sep 9, 2021

Attention all newcomers to the Zetaverse! We’ve seen a bunch of new people flooding in lately, and wanted to update everyone on how Zeta is pushing boundaries in DeFi options. 🔥

@solana

What is Zeta? We are an undercollateralized, fully decentralised futures & options protocol built on @solana and @ProjectSerum . Zeta offers the full derivatives product suite, where investors are able to go long, short, and actively express opinions.

But what makes us special?

@solana

The first aspect is Zeta's orderbook. Thanks to @solana's incredible speeds and @ProjectSerum's robust infrastructure Zeta brings the full CeFi options experience into DeFi. Individuals can choose to place bids, asks, trades all in sub-second speed, just as you would on FTX.

Read 11 tweets

Zeta ζ

@ZetaMarkets

Jul 15, 2021

1. A #Zeta101 thread on why options in DeFi don't quite work – yet 🧶😅

2. Hey ZetArmy, wanted to check in and do a quick brief on options in DeFi. Options are without a doubt, one of the most popular instruments for traders to lock in returns, hedge risk, and speculate on prices.

3. Let's talk about why options work in TradFi. Liquid markets mean tight spreads, low fees, and an infinite possibility of strategies. r/wallstreetbets has an entire community of people who love trade options, whether its Thetagang, GME bulls, or TSLA bears.

Read 11 tweets

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