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Author Topic: OTC options trading for BTC/USD  (Read 7775 times)
Andrew Vorobyov (OP)
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June 02, 2013, 04:48:33 PM
Last edit: April 06, 2015, 06:54:10 PM by Andrew Vorobyov
 #1

My name is Andrew Vorobyov (LinkedIn#1 and LinkedIn#2 and Bitrated)

I'm offering OTC (over the counter) options trading for BTC/USD.

Why trade options:

1. Hedge your BTC positions - you can buy PUTs (insurance) from price declines or you can buy CALLs to protect your loaned BTC from sudden rally.

2. You can trade up, down and sideways - did you know you can earn money if BTC does not move.

3. Risk is limited - you can create strategies where your maximum risk is predefined.

4. Capital effectiveness - you don't need to pay full price of bitcoin to enjoy upside potential.

5. Dividends income - by selling covered CALLs you will make Bitcoin to pay dividends for you, did you know it?


Why trade with me:


1. Complex structures as one trade - you don't have to buy each leg separately for butterflies or iron condors anymore.

2. Best prices available - go to MPEX.co and see how much he is charging then come back to me.

3. Theymos will be the third party arbiter if any disputes arise.


-----BEGIN PGP SIGNED MESSAGE-----
Hash: SHA256

I own this Bitcoin public key and will use it for arbitrating Andrew Vorobyov's disputes.

02b409262853965f40896e0718277ed4cc2b902318f4aa6edfeb7f6a10d6d79243
(1LdCBDfz6jm1pVSjagB8CtM2Cceey2zcru)
-----BEGIN PGP SIGNATURE-----

iF4EAREIAAYFAk+/FrIACgkQxlVWk9q1kefsYAD/XLfeZGq59MrddCfuGdnWjn0V
uvPKIAZq9MiyDnN54+oA/iJPyi+oQoHzpTn6/s7sYH3lDJB6ttbNQWdqGr1vRnSW
=vP4J
-----END PGP SIGNATURE-----


If you are not sure what strategy to take or don't know about options a lot - just post your thoughts here so I and other forum members can help you with it.

You can also start by reading basics at http://www.optionseducation.org/strategies_advanced_concepts/strategies/getting_started.html

If you want to be real ace in options trading go http://www.optionabc.com - it has all you need to become pro options trader


How it works?

According to the convention:

Getting quotes - Just write 5 CALL JUN 130 ( means 5 BTC contract expiring June of this year with $130 strike price ) and I will reply with bid/ask, 6.16/10.26

Sending orders - All orders are limit orders
Code:
BUY 5 CALL JUN 130 @ 9.54 DAY - means I want to buy 5 CALL contracts expiring June with $130 strike price at $9.54 each and order is valid till midnight
SELL 10 STRADDLE JUN 120 @ 24 HOUR 2 - means I want to SELL 10 CALLs and 10 PUTs contracts expiring June with $120 strike price at $24 each and order is valid for 2 hours
CANCEL 5 CALL JUN 130 @ 9.54 DAY - means I want to cancel my existing order

Structured orders - All orders are limit orders

Code:
BUY 5 CALL 120/130 @ 4.15 HOUR - means I want to buy 5 contracts of 120/130 CALL spread expiring June for $4.15 per contract
SELL 5 CONDOR 100/105/135/140 @ 2 DAY - means I want to sell 5 contracts of condor for $2 per contract and order is valid till midnight
BUY 1 BUTTERFLY 120/125/135 @ -0.5 - means I want to buy 1 contract of broken wing butterfly for $0.5 credit

Rules:
  • All orders are limit orders
  • Expiration price is weighted average price during the day at Friday to Saturday midnight of the last Friday of the month on the exchange that had the biggest volume during the week
  • Settlement is made during next 3 banking days
  • Options can be cash settled (any payment method) by mutual agreement of both parties
  • If no order expiration is specified order is considered expired at midnight
  • If Iron condor is possible it will be used instead of regular condor


Let me know if you have any questions about it

Andrew
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rini17
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June 02, 2013, 04:59:13 PM
 #2

Nice! Is the pricelist public?

CoinBr.com: First online MPEx brokerage launched beta! Easy to use interface and reasonable fees. Charts for MPEx stocks: live.coinbr.com * My Blog *
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June 02, 2013, 05:00:43 PM
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3. Theymos will be the third party arbiter if any disputes arise.



Why not use someone who is trusted?

Sorry El Cabron, you are banned from posting or sending personal messages on this forum.
Trolling
https://bitcointalk.org/index.php?topic=622250.msg7030081#msg7030081
Andrew Vorobyov (OP)
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June 02, 2013, 05:04:43 PM
 #4

Nice! Is the pricelist public?

There is no price list... it OTC (over the counter) - means you tell me what do you want to trade and I tell you bid/ask for it. After it you either take it or leave it.

Alternately, you can put you option position and price you willing to get/pay and I will take it or leave it.
Andrew Vorobyov (OP)
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June 02, 2013, 05:06:46 PM
 #5

3. Theymos will be the third party arbiter if any disputes arise.

Why not use someone who is trusted?

If Theymos is not trusted member than I don't know who is... Anyway, who are the candidates in your eyes?

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June 02, 2013, 05:17:26 PM
 #6

Ideal trust no one. But Theymos has been involved in more than one scam and has abused his power. No one will but n00bs will trust this/him.

I think I missed a lot during last year... But I'm sure I will be able to find decent person to be third party
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June 02, 2013, 05:23:43 PM
 #7

Okay, say I want calls struck at 130 USD/BTC with expiry on June 28. What's the price?

BTW, MPEx allows you to market make, thus solving the third party problem. Likewise, Bitfunder offers possibility to write options on FIAT.* assets. But no, you had to chose a boy that seems already freaked out from having too much responsibility over forum's donations....

Nice! Is the pricelist public?

There is no price list... it OTC (over the counter) - means you tell me what do you want to trade and I tell you bid/ask for it. After it you either take it or leave it.

Alternately, you can put you option position and price you willing to get/pay and I will take it or leave it.

CoinBr.com: First online MPEx brokerage launched beta! Easy to use interface and reasonable fees. Charts for MPEx stocks: live.coinbr.com * My Blog *
Andrew Vorobyov (OP)
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June 02, 2013, 05:42:43 PM
 #8

Okay, say I want calls struck at 130 USD/BTC with expiry on June 28. What's the price?

Price is for 1 BTC contract $6.16/$10.26. Price is valid for 2 minutes.
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June 02, 2013, 05:47:03 PM
 #9

Well, i might be interested if you do find someone who can be trusted.

Make proposition who suites you...

I am highly interested in 6 month to 1 year put options around $100 BTC. Maybe 1,000 or more BTC per option. Can you do this volume? Can you put cash in escrow?  

No... it's too much for me right now... Come later when I will have enough investors.  Right now I can handle up to 10 BTC contracts
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June 02, 2013, 06:13:30 PM
 #10

okay, once you get going, ill keep you in mind. thanks

10 btc is not really worth the effort for me.

It will depend on my exposure, I can scale up to 100 contracts time to time...  Just watch the thread for updates. I will post my orders here.
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June 03, 2013, 07:22:25 AM
 #11

BUY 10 CALL JUL 200

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June 03, 2013, 07:26:00 AM
 #12

I was going to reply but I see you use Ripple.
Andrew Vorobyov (OP)
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June 03, 2013, 07:31:44 AM
 #13

BUY 10 CALL JUL 200

You should state price if you want to buy... If you want just to get prices don't put BUY word

$10/$30 - $10 if you want sell it to me, $30 - if you want to buy it from me.

PS. It's total price for 10 contracts

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June 03, 2013, 07:41:59 AM
 #14

I was going to reply but I see you use Ripple.

If I trust somebody I can use Ripple with him.
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June 03, 2013, 11:08:35 AM
 #15

SELL 5 PUT JUN 115 @ 12
Andrew Vorobyov (OP)
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June 03, 2013, 02:16:51 PM
 #16

CALL JUN

PriceBidAsk
11510.6317.71
1208.9814.96
1257.5412.57
1306.3110.51
1355.258.74
1404.357.24
1453.595.98
Andrew Vorobyov (OP)
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June 04, 2013, 09:33:50 AM
Last edit: June 04, 2013, 09:46:18 AM by Andrew Vorobyov
 #17

5 JUN

Code:
CALL			PUT	
Bid Ask Bid Ask
100 2.7 5.6
105 3.7 7.6
110 4.9 10.1
115 6.3 13.0
120 7.9 16.4
8.0 16.7 125 9.7 20.1
6.8 14.1 130
5.7 11.8 135
4.8 9.9 140

5 JUL

Code:
CALL			PUT	
Bid Ask Bid Ask
100 5.3 12.3
105 6.5 15.1
110 7.8 18.2
115 9.3 21.7
120 10.9 25.4
11.3 26.4 125 12.6 29.5
10.2 23.7 130
9.1 21.3 135
8.2 19.1 140
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June 04, 2013, 05:20:34 PM
 #18

I think it's great that you are offering this service.

As soon as I am able to, I will take a closer look and may well buy some contracts  Smiley
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June 04, 2013, 06:02:03 PM
 #19

Sorry for my typo above.
Below is a simulation comparing your pricing with mpex.co arbitrarily on a particular call option July 140 using a price of 280 for the expiration.
Is it correct?
The depth however is quite significant on MPEX.

I gather that all transactions with you can be done in BTC.
Code:
USD/BTC= 121

Andrew

Call July 140
19.1USD = 0.15785124 BTC


Mpex.co

Call 140 July
O.USD.C140N

0.47648084BTC

For the exercise price used at expiration: 280

280-140=140
140/280=0.5BTC

Andrew
(0.5-0.15785124)/0.15785124=2.1675

Mpex.co
(0.5-0.47648084)/0.4764808=0.049360142

Andrew Vorobyov (OP)
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June 04, 2013, 07:19:51 PM
Last edit: June 04, 2013, 08:58:30 PM by Andrew Vorobyov
 #20

Below is a simulation comparing your pricing with mpex.co arbitrarily on a particular call option July 140 using a price of 280 for the expiration.

I really don't know how to calculate MPEX prices in USD but according to my calculations is

JUL CALL 140

8.2   19.1   <- my price

6.05    68.97  <- his price

PS. Not sure what you mean by "price of 280 for the expiration", I did not post my quotes for 280 strike...

Depth will be there... right now it's in price discovery mode... I still don't know how volatility skew will look like...

BTW it's very strange nobody interested in trading options, even MPEX has no trades...
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