Bitcoin Forum

Hello,

I am looking to buy put options from a trusted member or someone using a trusted escrow service.  I would like these options to be dated for at least 1 week.  I am looking for offers on strike prices ranging from $6-$11. 1 contract represents a 100 BTC agreement.

If you are long btc, this offer should be appealing to you.  You could either sell "naked" puts to go long, or sell BTC to create a hedged position.

The further out of the money the put is, the lower value it will have.  The shorter dated, also the lower value.  Contact me if you are interested in selling such contracts.

I will happily use escrow.

c0in$

For 50 BTC, I'll teach you how to use GPG and trade on MPEX.

You could list an offer on #Bitcoin-otc.com

You can even use a calculated field so that the strike price is relative to the last trade (e.g., so you always have the strike price in the money),

For the option to sell 10 BTC before September 28, 2012, at 5% above the current exchange rate (i.e., you are buying an in the money PUT option)  (

;;sell 10 btc at "{mtgoxlast}*1.05" USD "PUT option premium $0.75 USD/BTC expires 28Sep12. escrow of USDs required."

So if the current price is $11, the strike price would be $11.55.

With these terms, you pay 10 X $0.75 USD ($7.50, or equivalent in BTCs) to the PUT seller, the PUT seller sends to escrow $11.55 X 10 ($115.50) plus whatever the escrow fee costs.

If you wish to execute at any time before Sep 28, 2012, you send to the escrow 10 BTC and and the escrow will send to you the $115.50.   If the option expires, the escrow sends the $115.50 back to the PUT seller.

 - http://wiki.bitcoin-otc.com/wiki/Option_orders#PUT_Options_using_Escrow

[Edit: Corrected the escrow amount to reflect the actual strike price.]