Regarding the comment about no options on the site yet, yes, we've only recently opened. That's what I'm doing in the Mining forum
During our Beta soft launch there seemed to be good interest
However, after going live with real money we have yet to see much activity. I think it's because many don't understand how to make money with options. For example, there was repeated confusion about the difference between the Trade screen to place orders, and the Create options section. I don't think that's only due to the UI. I think many people are learning the fundamentals of how options work.
Let me answer the specific question from @Brunic:
I've made an account, to try it out. I'm a newbie in those sorts of thing, and all this seems as easy as making a worldwide speech in japanese.
So, here's my real life situation. At the end of the month, I'm going to sell 300 Bitcoins. I'm mining them right now, and they are going to be sold. Let's say you want to teach me how to use BitcoinOPX for my first time knowing that I'm selling 300 Bitcoins at the end of the month, what do you tell me?
This is a perfect
example. Notice he says "they are going to be sold". That means his mind is already made up about selling, which is the key benefit of what I'm talking about.
Right now June 16, 2012 say the average price of bitcoins is $6.50, and @Brunic knows he wants to sell 300 coins at the end of the month. At BitcoinOPX every Friday options reach Maturity, meaning they can be exercised/settled. So let's pick the target date Friday, June 29, 2012 as our option Maturity.
Here is the dilemma: @Brunic knows he will sell in the future, but he doesn't know what the BTC price will be then. It can be higher or lower (or the same). Without using options he would probably just buy or sell whatever the price. All things being equal he would win, lose or break even 33% of the time. Say the price typically swings 10% bi-weekly. At our current price of $6.50 by Friday June 29 the price will be either $7.15 or $5.85 (or still be $6.50).
Selling 300 coins means a difference of 300 x $.65 = $195 potential gain or loss from the current price of $6.50. By selling regardless of price as bitcoin goes so @Brunic goes, some months good, some bad etc.
Options provide an... option. He knows the price is now $6.50, and he knows he will sell, so why not lock in an additional 10% on the current price free and clear? By creating and selling options he can do just that. He can lock in a future sell price of $7.15 for June 29th, today. Here's how:
1. Go to BitcoinOPX.com and create a free account
2. From My Account click 'Create Option' to create a free option
3. Create an option as CALL, maturity Friday 6 p.m. June 29, 2012, strike price $6.50, for 100 coins (we will create 3 such options)
4. Click 'Continue'
The system, using a formula, will calculate the amount of escrow required to cover this option. An insufficient USD message with the amount required for escrow will show, since we haven't deposited any money yet. For this option the amount is $105.99.
Since we will create 3 such options we go to Mt.Gox and generate a USD redeemable code for $105.99 x 3 = $317.97. We actually make it for $325.00 to cover any price moves while we create the option.
Go back to BitcoinOPX and click 'Deposit' from My Account and use the redeemable code for instant deposit. Next, go back and create the 3 options described above.
The 3 options will now be in your account ready to be put on sale. Under my account you will see your resulting USD and escrow balances. To this point you've spent no money, and taken no irreversible action. You can cancel the options and your balances will be updated.
Go ahead and click 'Sell to Open' on one of the options, which brings up the Trade screen. We are going to open a position. All the relevant information is already filled in except the "limit" amount, the lowest possible price we will accept for this option. Remember we want to lock in a bitcoin sale price $.65 higher than now, so we multiply number of coins which is 100 x $.65 = $65.00.
Click to send the order. If the option sells you will receive $65.00 minus a .65 trade fee = $64.35 USD in your account. Do this for the other two options. If all of them sell you will have $193.05 USD added to your account.
Notice this is approximately the $195 amount from above representing how much we gain or lose from a future price swing of 10%. What we have done is ensure we gain 10% up front.
Now let's look at what is going on.
You can withdraw the $193.05 and pocket it. That's profit free and clear. We have approx. $318 in escrow, and 3 open positions. Each position is a June 29 $6.50 CALL for 100 BTC. This means on that date if the weighted average BTC price is above $6.50 we owe the difference multiplied by number of coins to the option holder.
Let's say Dave bought all 3 options. Here are the possible scenarios:
1. Price is higher than $6.50
Let's say the price is $7.50. This is what Dave was hoping for and the reason he bought the options in the first place. He was speculating the price would go higher than $7.15, because anything past that and he makes his invested money back plus profit. Remember, on each option he paid $65.00. So pricing from $6.50 to $7.15 means he only recovers his $65.00.
You owe $7.50 - $6.50 (strike price) multiplied by 300 = $300.00
The system will automatically settle the options out of your escrow funds. You lose almost the entire amount. The remainder is returned to your USD balance which you can withdraw anytime.
So now you are minus $300.00 from your escrow. Other than that you have all your original invested money - plus the $193.05. All you need to do is sell your 300 coins on Mt.Gox which yields 300 x $7.50 = $2250. Now take off $300 to cover that escrow = $1950. Now divide $1950 by 300 coins = $6.50
You get $6.50 per coin plus
the $193.05 (and Dave profits $105.00 on $195.00)
2. Price is exactly $6.50
Here you owe Dave nothing since there is no contract price difference. You sell your 300 coins on Mt.Gox at $6.50 = $1950, and you keep the earlier $193.05. You still made 10%
3. Price is lower than $6.50
Let's say the price is $6.00 Here you owe Dave nothing because CALL options only pay when market value is above the strike price. However, you still keep the earlier $193.05. You can sell your coins at $6.00 if you like, or hold them until the price rises again to $6.50, then sell, or... create more options on them!
In all cases you come out ahead, because you were going to sell and not hold anyway.