I would be more willing to write an option deal like this with a fixed number of BTC instead of a fixed USD amount. So an option to buy 200 btc at $5 would be something I would be more willing to underwrite as your risk profile is easy to comprehend.
Maybe I'm just a tad stupid, but giving someone the option $1000 of btc at the lowest price over the next thirty days is quite a volatile prospect. If the price goes back to $2.50, that means you need to have 400 btc on hand to cover the $1k buy and be willing to sell those 400 btc at that price + the premium.
Also, the growth pattern of the purchasing power of the $1000 does not sit right in my stomach. You have the opportunity to make at most your premium, but your risk exposure is much greater than that. One would need to be playing both sides of the fence in order to make this work.
Yes, and one would need deep pockets to cover the loss. I think I would be willing to take the risk near Brendio's bid but not much lower:)
The way I would do it is buy $1000 BTC now and then keep $2000 on hand to buy BTC at lower and lower prices. If BTC goes too low then I would have to get more funds. But the payoff would be decent assuming this did not happen.
