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I'm supposed to be programming, but I couldn't resist buying at 14. .. We'll see what sunday holds!
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Random, yep, that's right.
FreeMoney -- yep, you need an SSD, a backup SSD, an online backup for your wallet. It adds up!!
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Right now, API, or PM me. In the next 12 hours, there should be a web interface.
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That's because I'm an idiot. It's fixed, or should be.
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Here's my initial analysis:
We're starting to see some volume today, and lots of interest. Expect tighter spreads over the weekend, as people get used to the new setup.
Right now, longs are totally ruling this market; You can get paid $6.70 for a $100 Dec-29 call, at least, for 4 BTC of them. That's impressive, and I think I might go write those calls as soon as I'm done with this post.
Contract Volumes are stil super low; people are figuring out how to use the system, and what they want to do. June 30 $50 bids are priced at 70 cents; that's .7 / 20 * (365/20) = roughly 64% implied annualized interest / risk premium if BTC stays under $50 for the next 20 days. Seems like a sweet deal to me.
There are very, very few puts listed. I'm not sure where the mega shorts are yet, perhaps they don't know about the exchange. Perhaps they prefer to complain on the boards?
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TTBit,
Yep, anything you make selling is yours right now.
The underlying is of course locked off until end of contract.
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Yep, congrats. We passed one hundred registered logins today.
As a side note, I'm seeing some asks in the $50 US range. This doesn't make sense; one contract = 1 BTC. You might as well just buy the BTC if the ask is over market.
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Tonto, I'll keep an eye out. We wait for Gox to confirm, but you can always ping me if you get worried: admin@bitoption.com |
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Raize, when we say escrowed, we mean it. They won't be able to take the other side of the contract unless they can fulfill.
That is to say, you wish to buy puts, right? You're going to spend a little USD for the right to sell at $20 between now and the end of july.
In exchange, the buyer(s) will have to have USD in the system.
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Many of the uses cases for this could be done at the bitoption market as well.
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Cuddlefish, Why not just list these on bitoption.org? We escrow all accounts, and take care of the hassle. https://bitoption.org |
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Limiting trades is not the right answer. The graph is misleading; if you sell down all the way to $20, and then buy 1 BTC, you'll buy back at the original price up at say $26, and the price graph will look like that. You need to take into account volume; also, there's not enough high frequency trading and breadth to keep the graphs from looking like that right now.
The best thing that can happen right now is more traders, faster trade execution and keeping websockets up at Mt. Gox;all those will curb this a bit.
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So, tonto, your currency risks with that trade are essentially that BTC goes super low, and you'll wish you'd been able to sell, while they were instead locked up in the call until July 28.
The USD will go to you immediately, and you'll get either your BTC back, or the $50 at some point. If you don't get the $50 by the expiration date, you'll have the BTC unlocked and you can do it again, withdraw, exchange, whatever you like.
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p.s. I've always discounted non-escrowed exchange situations -- there's just so much risk there. What are your thoughts on this?
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Websockets are down. I am sad.
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I posted this image in another thread to help people understand how to post this trade, by the way: writing a covered call; this is a bet that BTC will still be somewhat valuable, just not $50 valuable in the next two months.  |
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Monte, essentially correct.
I'll re-state for clarity and correctness, though.
-My 1 BTC will be in escrow until 7/28/2011.
-To buy this Call someone will have to pay me $7.10.
-If on 7/28/2011 the price of BTC is over $50.00 <<--
and they are economically rational <<--
they will exercise the option and buy it at $50.00.
They will make the difference between $57.10 and the current price and I will make the difference between what I bought the BTC at and $57.10.
-If not then I get to keep the $7.10 and the 1BTC.
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Correct usage for canceling open options:
cancelOpenBid?token=&bidId=
cancelOpenAsk?token=&askId=
I incorrectly had something else here earlier.
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1) So, register at https://bitoption.org. 2) Deposit some BTC 3) On the right side, under Place an order, put in order in. You want to keep your coins and get some cash, and are willing to give them up if the price goes up, say double again. You want USD now, and are willing to sell BTC later for a fixed price. You are Writing a call, or "Asking". So, you should write a call with strike of $50 US, closing, say end of July, and asking whatever you'd like in "interest". "Interest" is really just USD that someone pays you for the right to buy if the price goes over the "strike price." It will be USD denominated; so once someone buys your call you can exchange back for BTC if you like, or keep it as USD if you prefer. Attached is an explanatory image. |
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