with current price ~42c, my market for expiration 180 days:
20 cent put: $0.0090 bid / $0.0200 offer
50 cent call: $0.1700 bid / $0.2600 offer
So we're on the same page..
for $150 (you pay me), I'll buy 7500 coins from you at 20c each whenever you wish
I'll give you $1275 if you give me the option to buy 7500 coins from you at 0.50 in 180 days.
The short call is tricky, I have no way of knowing you can deliver 7500 coins, especially if they are $5 each.
I will sell you your call, buy your put and buy 5100 bitcoins at a price of .42 USD/BTC as a package.
So, total package is:
I sell you 5100 coins at 42c each (+$2142 USD)
I sell you a 20c put on 7500 coins (+$150 USD)
I buy 7500 50c calls at 17c each (-$1275 USD)
* Net credit to me of $1017
* You get 5100 coins up front
* I have the right (not obligation) to buy 7500 coins from you at 50c each on 7/31/2011
* You have the right to sell me 7500 coins at 20c ($1500) whenever you wish, expires 7/31/2011
Would you agree to hold the 7500 coins at BitcoinSportsBook, or a wallet of my choosing? (I would put up the 5100, you 2400). Block explorer can verify totals.
You send me a check in the amount of $1017.
I send you a check for $3750 on 7/31/2011 if I want the coins.
I send you a check for $1500 whenever you wish for those 7500 coins (expire 7/31/2011).