[ANN] Coinut.com - The only Bitcoin Options Exchange [beta]

[wangxinxi]

What's the BTC exchange you get price?

We use Bitstamp, Bitfinex, Karen, BTC-E, BTCChina CampBX. We calculate a average of these price ticks weighted by the bid and ask amount.

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[wangxinxi]

Options give more profit if the price is volatile. I will start buying options when there is a movement in bitcoin price.

Yes, have you tried recently? It's quite volatile.

[wangxinxi]

We were just attacked by a team called DD4BC using DDoS.

DD4BC Team <dd4bc@safe-mail.net>:
Hello,

Your site is extremely vulnerable to DDoS attacks.

I want to offer you info how to properly setup your protection, so that you can't be ddosed.

If you want info on fixing it, pay me 1 BTC to 13adm65yzzre7fLKSFZayQ8dYyxgXaVyMU


Xinxi Wang:
Thanks. Yes, I know this. It's currently a little vulnerable to DDoS attacks. But we just cannot afford the money to fix it at this moment. I will definitely contact you when we are ready.

Then they just sent millions of requests. And it's difficult for me to open the site.



Xinxi Wang:
Man, you just selected the wrong target. Maybe you should try this after a few months.

DD4BC Team:
OK, contact me within a few months and I will stop the attack.

CloudFlare will not help.

And one more thing: Price is 1 BTC today. Tomorrow it will increase to 2 BTC and will keep increasing for every day of delay.


Xinxi Wang:
Man, I am a computer science PhD student, and I don't have so much money.


DD4BC Team:
Good for you. I'm not sure how is your formal education going to help in this situation, but...good luck.


Xinxi Wang:
I also think so.

BTW, The site is now working although they are still attacking.

[madmax6688]

We were just attacked by a team called DD4BC using DDoS.

DD4BC Team <dd4bc@safe-mail.net>:
Hello,

Your site is extremely vulnerable to DDoS attacks.

I want to offer you info how to properly setup your protection, so that you can't be ddosed.

If you want info on fixing it, pay me 1 BTC to 13adm65yzzre7fLKSFZayQ8dYyxgXaVyMU


Xinxi Wang:
Thanks. Yes, I know this. It's currently a little vulnerable to DDoS attacks. But we just cannot afford the money to fix it at this moment. I will definitely contact you when we are ready.

Then they just sent millions of requests. And it's difficult for me to open the site.



Xinxi Wang:
Man, you just selected the wrong target. Maybe you should try this after a few months.

DD4BC Team:
OK, contact me within a few months and I will stop the attack.

CloudFlare will not help.

And one more thing: Price is 1 BTC today. Tomorrow it will increase to 2 BTC and will keep increasing for every day of delay.


Xinxi Wang:
Man, I am a computer science PhD student, and I don't have so much money.


DD4BC Team:
Good for you. I'm not sure how is your formal education going to help in this situation, but...good luck.


Xinxi Wang:
I also think so.

BTW, The site is now working although they are still attacking.

Ignore him, he does this to many sites.

[leancuisine]

That was... strange. The BTC/USD dropped before my eyes from $230 down to $50~ before recovering back up. Wiped the limit orders off of the screen. Was that just a glitch?

[wangxinxi]

Yeah, it can happen if BTC exchanges are short for liquidity and BTC price can jump very rapidly.

[wangxinxi]

We just added vanilla options. Please contact us if you want to be a liquidity provider. There will be a good offer for you.

[Ian Maxwell]

I'm in the market for some put options so I'm happy to find this site, means I don't have to talk to people. 

Only, I'm not clear on how deep the market is right now. When I see (for example) Amount: 14, does that mean there are only 14 contracts at the given asking price, or only 14 contracts for that strike at all? Obviously I hope it's the former, since I'm not that interested in insuring 0.14 bitcoins.

[wangxinxi]

Hi Ian, how much do you want to buy? We can definitely find a seller for you if it is not too large.

[cyclotronmajesty]

I’m new to bitcoin and i’m new to options trading. I understand the basic principle of call and put options. But I’m not understanding the interface you use.

   What is the “amount”? the number of options you are buying?
   
   What is the “price”? ...

   I understand the strike price is the point at which the bet takes place.

What is the

 “bid", and “ask”?



What?

[wangxinxi]

I’m new to bitcoin and i’m new to options trading. I understand the basic principle of call and put options. But I’m not understanding the interface you use.

   What is the “amount”? the number of options you are buying?
   
   What is the “price”? ...

   I understand the strike price is the point at which the bet takes place.

What is the

 “bid", and “ask”?



What?

An option contract has a seller and a buyer. In our site, contract size is 0.01BTC. Amount is the number of contracts. Bid shown on the trading interface is the best buyers' price, and ask the best sellers' price. Price of the order form is the price that you want to buy or sell the contracts at.

[cyclotronmajesty]

I’m new to bitcoin and i’m new to options trading. I understand the basic principle of call and put options. But I’m not understanding the interface you use.

   What is the “amount”? the number of options you are buying?
   
   What is the “price”? ...

   I understand the strike price is the point at which the bet takes place.

What is the

 “bid", and “ask”?



What?

An option contract has a seller and a buyer. In our site, contract size is 0.01BTC. Amount is the number of contracts. Bid shown on the trading interface is the best buyers' price, and ask the best sellers' price. Price of the order form is the price that you want to buy or sell the contracts at.

So If I want 1BTC i'd put in 100 as my amount and set the Price at .01 BTC?

And if I set my strike price to 230 USD and it goes to 232, I'd get to buy 1 BTC at what price exactly?

[wangxinxi]

I’m new to bitcoin and i’m new to options trading. I understand the basic principle of call and put options. But I’m not understanding the interface you use.

   What is the “amount”? the number of options you are buying?
   
   What is the “price”? ...

   I understand the strike price is the point at which the bet takes place.

What is the

 “bid", and “ask”?



What?

An option contract has a seller and a buyer. In our site, contract size is 0.01BTC. Amount is the number of contracts. Bid shown on the trading interface is the best buyers' price, and ask the best sellers' price. Price of the order form is the price that you want to buy or sell the contracts at.

So If I want 1BTC i'd put in 100 as my amount and set the Price at .01 BTC?

And if I set my strike price to 230 USD and it goes to 232, I'd get to buy 1 BTC at what price exactly?

If you want 1BTC, you need to put 100 as your amount. This is correct.

The price should be based on your estimation. I give you some intuitions using an example.

Suppose you want to buy 100 CALL option with strike price 230. If the final price is above 230, you get 1 BTC back and thus you make profit=1 - Price*100. Otherwise, you get nothing back and thus lose Price*100. To make profit, you want to make sure your expected reward is positive. If the chance that the final price is above 230 is P, then your expected reward is P*(1-Price*100) + (1-P)*(-Price*100). To make it positive, Price should be less than 0.01*P. So your estimation of P is the key.

[cyclotronmajesty]

I’m new to bitcoin and i’m new to options trading. I understand the basic principle of call and put options. But I’m not understanding the interface you use.

   What is the “amount”? the number of options you are buying?
   
   What is the “price”? ...

   I understand the strike price is the point at which the bet takes place.

What is the

 “bid", and “ask”?



What?

An option contract has a seller and a buyer. In our site, contract size is 0.01BTC. Amount is the number of contracts. Bid shown on the trading interface is the best buyers' price, and ask the best sellers' price. Price of the order form is the price that you want to buy or sell the contracts at.

So If I want 1BTC i'd put in 100 as my amount and set the Price at .01 BTC?

And if I set my strike price to 230 USD and it goes to 232, I'd get to buy 1 BTC at what price exactly?

If you want 1BTC, you need to put 100 as your amount. This is correct.

The price should be based on your estimation. I give you some intuitions using an example.

Suppose you want to buy 100 CALL option with strike price 230. If the final price is above 230, you get 1 BTC back and thus you make profit=1 - Price*100. Otherwise, you get nothing back and thus lose Price*100. To make profit, you want to make sure your expected reward is positive. If the chance that the final price is above 230 is P, then your expected reward is P*(1-Price*100) + (1-P)*(-Price*100). To make it positive, Price should be less than 0.01*P. So your estimation of P is the key.

Don't call and put stock options work differently?

I thought the only loss on the buyer was the price of buying the stock option.
Then if you don't win the bet you only loose the price of the stock option.

Your site seems to work a bit like BTCoracle.com.

Where you have to put down a certain amount first, in order to get any profit, and then that profit is limited by a certain price multiplier on how much you put down. Which makes both sides of the trade obligatory not optional.

As far as I know the stock option allows one to buy and sell at a certain price, and if it doesn't reach that price you only loose the price of the option.

How is your system different?

[wangxinxi]

I’m new to bitcoin and i’m new to options trading. I understand the basic principle of call and put options. But I’m not understanding the interface you use.

   What is the “amount”? the number of options you are buying?
   
   What is the “price”? ...

   I understand the strike price is the point at which the bet takes place.

What is the

 “bid", and “ask”?



What?

An option contract has a seller and a buyer. In our site, contract size is 0.01BTC. Amount is the number of contracts. Bid shown on the trading interface is the best buyers' price, and ask the best sellers' price. Price of the order form is the price that you want to buy or sell the contracts at.

So If I want 1BTC i'd put in 100 as my amount and set the Price at .01 BTC?

And if I set my strike price to 230 USD and it goes to 232, I'd get to buy 1 BTC at what price exactly?

If you want 1BTC, you need to put 100 as your amount. This is correct.

The price should be based on your estimation. I give you some intuitions using an example.

Suppose you want to buy 100 CALL option with strike price 230. If the final price is above 230, you get 1 BTC back and thus you make profit=1 - Price*100. Otherwise, you get nothing back and thus lose Price*100. To make profit, you want to make sure your expected reward is positive. If the chance that the final price is above 230 is P, then your expected reward is P*(1-Price*100) + (1-P)*(-Price*100). To make it positive, Price should be less than 0.01*P. So your estimation of P is the key.

Don't call and put stock options work differently?

I thought the only loss on the buyer was the price of buying the stock option.
Then if you don't win the bet you only loose the price of the stock option.

Your site seems to work a bit like BTCoracle.com.

Where you have to put down a certain amount first, in order to get any profit, and then that profit is limited by a certain price multiplier on how much you put down. Which makes both sides of the trade obligatory not optional.

As far as I know the stock option allows one to buy and sell at a certain price, and if it doesn't reach that price you only loose the price of the option.

How is your system different?

Call and put options are different. I used call options in my example. You are right. Buyers lose only the price of the options. We are different from BTCoracle.com because you can choose different strike price and set option price in our site.

You are right that stock options allow you to buy and sell at a certain price. Our vanilla options also let you buy or sell BTC at the strike price. If it does not reach the price, you lose only the price. Is there any difference?

[cyclotronmajesty]

I’m new to bitcoin and i’m new to options trading. I understand the basic principle of call and put options. But I’m not understanding the interface you use.

   What is the “amount”? the number of options you are buying?
   
   What is the “price”? ...

   I understand the strike price is the point at which the bet takes place.

What is the

 “bid", and “ask”?



What?

An option contract has a seller and a buyer. In our site, contract size is 0.01BTC. Amount is the number of contracts. Bid shown on the trading interface is the best buyers' price, and ask the best sellers' price. Price of the order form is the price that you want to buy or sell the contracts at.

So If I want 1BTC i'd put in 100 as my amount and set the Price at .01 BTC?

And if I set my strike price to 230 USD and it goes to 232, I'd get to buy 1 BTC at what price exactly?

If you want 1BTC, you need to put 100 as your amount. This is correct.

The price should be based on your estimation. I give you some intuitions using an example.

Suppose you want to buy 100 CALL option with strike price 230. If the final price is above 230, you get 1 BTC back and thus you make profit=1 - Price*100. Otherwise, you get nothing back and thus lose Price*100. To make profit, you want to make sure your expected reward is positive. If the chance that the final price is above 230 is P, then your expected reward is P*(1-Price*100) + (1-P)*(-Price*100). To make it positive, Price should be less than 0.01*P. So your estimation of P is the key.

Don't call and put stock options work differently?

I thought the only loss on the buyer was the price of buying the stock option.
Then if you don't win the bet you only loose the price of the stock option.

Your site seems to work a bit like BTCoracle.com.

Where you have to put down a certain amount first, in order to get any profit, and then that profit is limited by a certain price multiplier on how much you put down. Which makes both sides of the trade obligatory not optional.

As far as I know the stock option allows one to buy and sell at a certain price, and if it doesn't reach that price you only loose the price of the option.

How is your system different?

Call and put options are different. I used call options in my example. You are right. Buyers lose only the price of the options. We are different from BTCoracle.com because you can choose different strike price and set option price in our site.

You are right that stock options allow you to buy and sell at a certain price. Our vanilla options also let you buy or sell BTC at the strike price. If it does not reach the price, you lose only the price. Is there any difference?

I am not sure. Could you walk me through an example of a call or put option using your interface?

I am a newbie. I'm not sure i'll invest but, I am interested in learning how it works.

[wangxinxi]

I assume you want to buy vanilla options because you want to buy or sell at certain prices. Suppose you want to buy 0.01 BTC at 224 on April 26, you can buy a CALL option with strike price 224 and expiry time April 26.

OK, here is what you should do.

After you login, you first choose BTCUSD under "vanilla option" on the left side of the trading interface. Then you select the expiry date 2015-04-26. After that you fill the call order form.

In that form, you first set the Strike Price as 224. For the Order Type, you can choose market order because that allows your order executes immediately. For Amount, 1 contract means 0.01 BTC. Since you want to buy 0.01 BTC, you just put 1 there. Since it's a market order, you don't need to set a Price.

Please let me know if you have any further questions.

[wangxinxi]

Our liquidity has recently doubled. There is even more liquidity coming. Stay tuned. 

[chriswen]

Our liquidity has recently doubled. There is even more liquidity coming. Stay tuned. 

Yes liquidity looks good.

I also had the question about the amount.  Is that the BBO for the bid and ask price.  Or is it total amount for that strike price but some might be at 0.99654 .

I think I'll be joining your signature campaign.  It looks good and I realize how the ref works now.  I'll be glad to promote it.

Also you know that once liquidity ramps up you'll be able to offer a VIX.  Do you have plans with that as a goal?  You should work towards a VIX product. 

[wangxinxi]

Our liquidity has recently doubled. There is even more liquidity coming. Stay tuned. 

Yes liquidity looks good.

I also had the question about the amount.  Is that the BBO for the bid and ask price.  Or is it total amount for that strike price but some might be at 0.99654 .

I think I'll be joining your signature campaign.  It looks good and I realize how the ref works now.  I'll be glad to promote it.

Also you know that once liquidity ramps up you'll be able to offer a VIX.  Do you have plans with that as a goal?  You should work towards a VIX product. 

The amount shown is the total amount for that strike price. You are welcome to join our signature campaign. Yeah, once there is enough  trading volume, we will develop a VIX product.