Offer BTC Options

[Eisenhower34]

Offerig Bitcoin options:

1) call $95 strike @ $25 fee, 30 days max 10 BTC
2) call $100 strike @ $20 fee, 30 days, max 10 BTC
3) call $100 strike @ $15 fee, 15 days, max 10 BTC

4) put $75 strike @ $25 fee, 30 days max 20 BTC

... also open for proposals

Rules:
- No partial option execution possible

My reputation is outstanding:
Over $6000 in Amazon Gift Codes: https://bitcointalk.org/index.php?topic=62361.0
Over 700 BTC bought with paypal / paxum https://bitcointalk.org/index.php?topic=96578.0
Many funds lent to other members https://bitcointalk.org/index.php?topic=97764.0

Code:

Options sold:
anonymous $135 strike 10 BTC, expires Sept 05th 12:00 CET

[erikspoon]

can you explain what those options mean?(sorry for being a noob)

[DeathAndTaxes]

can you explain what those options mean?(sorry for being a noob)

It means you can pay $30 per BTC and have the right but not obligation to purchase 1 BTC @ $135 anytime in the next three months.  Obviously since you are paying a $30 premium your break even point is $165.  If you believe that BTC exchange rate will exceed $165 in the next three months you would profit.

[mrkent]

We really need a better option market around here.

[Eisenhower34]

thanks DeathAndTaxes (soon your post #10k) and yes you are right mrkent.

Ok, all sold.

[Eisenhower34]

Update with another option, only 5 BTC this time available

[suryc]

Anybody want to sell some put options? Is there no existing exchange for btc options trading?

[Eisenhower34]

Is there no existing exchange for btc options trading?

No good one so far.

[suryc]

How about selling those $110/btc options for $10 fee?
I would take 5 at that price.

When you demarcate the option price in $ do you take payment in $ or in btc equivalent?

[Eisenhower34]

Sorry, cant do that at least not with a 30 days period. In the last 7 days we witnessed a pricedrop down from 120 and 14 days ago we were at 140.

I could offer
$110 strike @ $10 fee 10 days, max 5 BTC
$105 strike @ $15 fee 15 days, max 5 BTC


There arent any MtGox USD codes so I accept payments in BTC equivalent.

[suryc]

Ok, if payment will be in btc -
I will take 5x $110/btc strike (10 days) at 0.1BTC fee ea

[Eisenhower34]

$110 strike @ $10 fee 10 days, max 5 BTC
with a price right now of 95 USD / BTC transfer 0.5263 BTC within the next 2 hours to:
1BseFPFvft95efsH744pJHGssJryVAuh1K

Option expires June 19th 11:00 CET

[suryc]

OK, it's done:
http://blockchain.info/tx/cb6c2e007654ad9b5be1348299c8b9dbbae617239915392b34d3272ed3580c3b

Question for clarification: if the price goes above $110 and I decide to exercise the option, will you want me to actually buy 5 bitcoins from you at $110 or will you just buy back the option, that is to say, give me the difference (btc price at exercise - $110).
I haven't done a bitcoin option before, so please correct me if I'm misunderstanding something.

Someone should really start a proper future/options exchange for bitcoin. I'm sure there would be a lot of interest.

[Eisenhower34]

I will transfer the difference in BTC.
Lets assume the price is at $120 then I would transfer you 5 x ($120 - $110) = $50 = $50 / $120 per BTC = 0.4167 BTC

All options sold for now but I leave this thread open. Leave me a message and respond here for a public timestamp in case you want to execute this option.

[Eisenhower34]

op updated with new option

[Eisenhower34]

op updated

[Eisenhower34]

bump

[newguy05]

We really need a better option market around here.

i agree, but you cannot be a market maker without a way to short the btc in order to hedge the put contracts written, it's suicide to sell naked puts on btc. Just having calls like what the OP did doesnt do much. So until there is a way to short btc, you wont see any kind of real option exchanges for btc.

[Eisenhower34]

I can offer put options too, but the fee would be much higher like extra 0.5% of the market value per day to cover the interest. So a 10 days put option would cost $5 extra in fee and thats only 10 days. a 30 days put option would cost additional $15...

and therfor put options would be far less attractive...

[newguy05]

I can offer put options too, but the fee would be much higher like extra 0.5% of the market value per day to cover the interest. So a 10 days put option would cost $5 extra in fee and thats only 10 days. a 30 days put option would cost additional $15...

and therfor put options would be far less attractive...

so for at the money puts you are looking to charge $30 which is ~30% premium for a 30 day contract?  in the real option market people will only pay those kind of price if they expect a blackswan event like the lehman collapse, but given btc's volatility it may be justified except you have no hedge. So i guess the plan is to keep pocketing the premium on those naked puts until a time when(if) btc crashes and blowup your account then default on the contracts. Not a bad gig, many sell side funds have done just that on the street