If Bitcoin Wants Serious Investment, It NEEDS Options Trading

[Mikerogers]

I'm aware that not everyone is cognizant with what options trading is, so here's a simple definition from the SEC: "Options are contracts giving the purchaser the right to buy or sell a security, such as stocks, at a fixed price within a specific period of time. Stock options are traded on a number of exchanges."

Everything trades in options nowadays; gold, silver, wood, copper, cows, coal, cotton, stocks, YOU name it and it has options. Does bitcoin have options? Unfortunately the answer is no. There are many people out there who may have longterm bullish views on bitcoin, but aren't ready to take on short term volatility. If serious investors are given the chance to partake in bitcoin in a designated time period, they're more likely to do so.

So what can we do? Petition the CBOE (Worlds largest option exchange) to allow for options w/bitcoin. I know many people here aren't aware of how options work, but you must trust me on this on. It's absolutely HUGE. CBOE has nothing to lose from this, they'll just have another avenue of potential revenue.

Call their investors relations Mon-Fri and advise that they would be better off if they took on bitcoin.

Inside the US (Mon-Friday 9am-7pm) - (866) 301-8223
Outside the US(Mon-Friday) - (201) 680-6578

Lets go to Pluto people, lets get options trading for bitcoin!

[bluemeanie1]

already been banned in Beligum: https://bitcointalk.org/index.php?topic=620789.0

-bm

[bluemeanie1]

also NXT does have Options, we have 'shortNXT' (which I think is technically a synthetic derivative), so it's possible to profit from a fall in NXT price while inside the NXT network.

https://twitter.com/shortnxt

-bm

[Beliathon]

Bitcoin needs derivatives trading and similar Wall Street bankster gambling shenanigans like I need an asshole on my elbow. Fuck right off.

The whole point of Bitcoin is that it solves the problem of trust! Adding contracts on top of that is completely self-defeating.

This is like putting giant wooden masts and sails on a Steam Boat - retarded.

[bluemeanie1]

Bitcoin needs derivatives trading and similar Wall Street bankster gambling shenanigans like I need an asshole on my elbow. Fuck right off.

while derivatives aren't shenanigans, opening up an options exchange certainly would have a depreciative effect on BTC.  Mostly because BTC has practically no real-world demand.

last time I checked, Coinsetter was opening up an BTC options exchange.

also, a paper on p2p options: http://www.altchain.org/?q=whitepapers/paper4.html

-bm

[damnek]

I agree with the OP, I'd much rather have a strategic option position on bitcoin than holding a significant number of bitcoins outright. I can't hedge my risk this way..

I'm sure a lot more professional traders would be interested in bitcoin if it had a liquid option market.

[fancy_pants]

If you're into the whole trusting strangers thing, then apparently bitcoin HAS Options Trading.

http://www.btcoracle.com

... or you could design your own:
http://bitbet.us

[Phinnaeus Gage]

Bitcoin needs derivatives trading and similar Wall Street bankster gambling shenanigans like I need an asshole on my elbow. Fuck right off.

The whole point of Bitcoin is that it solves the problem of trust! Adding contracts on top of that is completely self-defeating.

This is like putting giant wooden masts and sails on a Steam Boat - retarded.

Not so fast, bud! What if giant wooden masts and sails are offered for pre-sale via group-buys on some crowdfunding site, then, after a slight delay, of which we would all be warned ahead of time that the timeline was not written in stone due to being in uncharted waters, alt-masts and alt-sails would be introduced, finally enabling Captain X's steamboat to now explore the Mariana Trench, all thanks to creative marketing and VC funding procured from entities build on a house-boat of cards?

Now, the only thing missing is building and hosting various exchanges based in different countries and operating on one platform, thus when one goes down, so do the others. Once such is built and has been profiting for a while, sell it to some Frenchman via an IOU...

[bryant.coleman]

I am opposed to derivatives trading and market manipulation. If Bitcoin exchanges enable Options / Futures trading, then nothing will separate it from the bankers and the Wall Street.

[juju]

I'm aware that not everyone is cognizant with what options trading is, so here's a simple definition from the SEC: "Options are contracts giving the purchaser the right to buy or sell a security, such as stocks, at a fixed price within a specific period of time. Stock options are traded on a number of exchanges."

Everything trades in options nowadays; gold, silver, wood, copper, cows, coal, cotton, stocks, YOU name it and it has options. Does bitcoin have options? Unfortunately the answer is no. There are many people out there who may have longterm bullish views on bitcoin, but aren't ready to take on short term volatility. If serious investors are given the chance to partake in bitcoin in a designated time period, they're more likely to do so.

So what can we do? Petition the CBOE (Worlds largest option exchange) to allow for options w/bitcoin. I know many people here aren't aware of how options work, but you must trust me on this on. It's absolutely HUGE. CBOE has nothing to lose from this, they'll just have another avenue of potential revenue.

Call their investors relations Mon-Fri and advise that they would be better off if they took on bitcoin.

Inside the US (Mon-Friday 9am-7pm) - (866) 301-8223
Outside the US(Mon-Friday) - (201) 680-6578

Lets go to Pluto people, lets get options trading for bitcoin!

Correct me if I am wrong, because I don't know too much about Options Trading. I thought that the Winklevoss brothers are in the process of doing what you are describing? It sounds like you know alot about options, if you haven't heard or read about what I mentioned you should certainly look it up.

[BetMoose]

I don't understand - are you looking for bitcoin-denominated options (those you can buy/sell with BTC), or USD-denominated ones on bitcoin specifically? Last I checked bitcoin wasn't a "security" per se...

[Ron~Popeil]

I can see a good financial services market in bit coin but we don't have to use to imitate all of the bad ideas in fiat currency. If you want to hold a position in bit coin buy some bit coin.

[mkc]

If there is no gold futures, and gold etf, and options on gold futures. options on etf., only spot gold. Gold price will be much higher. Central banker can short gold out of thin air, meaning there are only 4000 tons of gold, we they can sell 40000 thousand tons of gold on the market.
There are only 21mil btc, if there is option, they (someone don't want higher btc price) can create synthetic btc from options, which will effectively create supply of btc from think air. So I don't think btc option is a good idea. If you want to sell btc, you buy it with your own first.That is a fair market.

[franky1]

gold, cotton, etc needs contracts because you cant move gold ownership DIGITALLY without it being a contract.. GOLD IS NOT DIGITAL

bitcoins do not need contracts. because bitcoins are digital.

if you want to 'short' bitcoins.. sell them at todays price of $600 and put a buy order BELOW for EG $500. thus getting more bitcoins.

the whole contracts and shorting on fiat markets of the past is where fractional reserve, gambling and debt come in.

we should never have 'pretend bitcoins'(contracts) being traded. if you dont want to trade a true bitcoin, then dont trade bitcoins as you are obviously missing the point of what bitcoins is all about

[QuantumQrack]

Atlas (the trading platform) already offers bitcoin options trading.

[bitpump]

Nice article:
http://www.coindesk.com/inching-towards-bitcoin-derivatives/

Authorities might want to try to f*ck up Bitcoin by doing this:

"Printing paper money to underwrite massive naked short selling on bitcoin exchanges is the greatest single threat to bitcoin’s long-term dominance as free market money."

[Vessko]

Much more than options, Bitcoin needs futures trading. Options are useful only for speculation but futures, besides speculation, have a much more practical value - in the case of currencies, they can be used to hedge currency risk. Currently the only way merchants can get rid of the Bitcoin currency risk is by getting rid of their Bitcoin income immediately by converting it to the fiat currency of their choice. If they could hedge Bitcoin currency risk by selling a Bitcoin futures contract, they could afford to keep a larger inventory of Bitcoin.

[zimmah]

But wouldn't that make bitcoin more prone to fractional reserve schemes?

I'm not so sure that will be a good idea.

[KaChingCoinDev]

I'm aware that not everyone is cognizant with what options trading is, so here's a simple definition from the SEC: "Options are contracts giving the purchaser the right to buy or sell a security, such as stocks, at a fixed price within a specific period of time. Stock options are traded on a number of exchanges."

Everything trades in options nowadays; gold, silver, wood, copper, cows, coal, cotton, stocks, YOU name it and it has options. Does bitcoin have options? Unfortunately the answer is no. There are many people out there who may have longterm bullish views on bitcoin, but aren't ready to take on short term volatility. If serious investors are given the chance to partake in bitcoin in a designated time period, they're more likely to do so.

So what can we do? Petition the CBOE (Worlds largest option exchange) to allow for options w/bitcoin. I know many people here aren't aware of how options work, but you must trust me on this on. It's absolutely HUGE. CBOE has nothing to lose from this, they'll just have another avenue of potential revenue.

Call their investors relations Mon-Fri and advise that they would be better off if they took on bitcoin.

Inside the US (Mon-Friday 9am-7pm) - (866) 301-8223
Outside the US(Mon-Friday) - (201) 680-6578

Lets go to Pluto people, lets get options trading for bitcoin!

We need altcoin options!

Shorting Auroracoin at .1 BTC .... :D:D:D

[redwhitenblue]

There are many people out there who may have longterm bullish views on bitcoin, but aren't ready to take on short term volatility. If serious investors are given the chance to partake in bitcoin in a designated time period, they're more likely to do so.

An option contract would create even more volatility then the price of Bitcoin. Any derivative will have a greater amount of volatility then the underlying asset.

The huge amount of volatility in Bitcoin would also likely make Bitcoin options prohibitively expensive. When you buy for example a Call option, someone will need to take the opposite bet of you and if it is good possibility that the price of Bitcoin will rise 20% in one day (this is not uncommon) then the person on the other side of the bet will need to be compensated.

In general options contracts being available for an investment is the result of a large amount of liquidity and investment in the underlying asset. Options contracts generally do not cause investments in the underlying asset.