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OTC Options

Overview

Options allows deal Makers to Create Call and Put Options. Deal Takers can browse existing options by pair and expiry, and purchase portions or all of an option. Options uses an oracle to track the market price of the tokens in the pairs. It is a European style option, meaning it is executed on the date of expiry only, unlike the American style, which can be done any time before the expiry. Fuzion’s Options platform allows anyone to create a put or call for any of the trading pairs offered. When the Options deal is created, the tokens (whichever side of the pair) are locked in the contract until the expiry, at which point a buyer of the option has the right, but not the obligation, to activate the option and execute the trade. Options not bought or activated may be cancelled by the creator and the underlying tokens are returned to their address. A buyer of an option pays a premium to the deal maker, which the maker keeps regardless of whether the option is activated or not. A commission of 0.5% of the premium is paid to yFUZN stakers, and 0.5% of any activated option is paid by both maker and taker. Deal takers can purchase all or part of an option. Each purchase must be activated independently.

Pairs

The token pairs available to trade. The numbers next to the pairs indicate the quantity of deals available for each pair.

Option Indicators

Option prices are calculated using a number of variables which change constantly. These measure the factors that affect options prices. Learn more about these indicators here.

  • Delta
  • Gamma
  • Vega
  • Theta
  • Rho
  • Vanna
  • Vomma
  • Charm

Tabs

Browse

All shows all options for the pair chosen. Options can also be browsed by expiry date by clicking on the desired date. Options expiring on that date only will be displayed.

Call

Strike Price - The price and denom the buyer pays for the token if the option is activated. It is set by the maker.

Amount - The quantity of the token in the option available. The quantity of tokens in the option is decided by the maker on creation. The amount displayed is the amount available.

Option Price - The premium paid per token to the maker of the option by the taker. This is calculated by the platform using the Black-Scholes model. The premium is dynamic, and changes constantly once the option is created.

Expiry (UTC) - The date when the option is set to expire and can be activated.

Put

Strike Price - The price and denom the option taker sells the token for if the option is activated.

Amount - The quantity of the token in the option available. The quantity of tokens in the option is decided by the maker on creation. The amount displayed is the amount available.

Option Price - The premium paid per token to the maker of the option by the taker. This is calculated by the platform using the Black-Scholes model. The premium is dynamic, and changes constantly once the option is created.

Expiry (UTC) - The date when the option is set to expire and can be activated.

Buy Call

Buying a CALL gives the holder or buyer of this option the right to BUY the underlying asset from the creator on the Expiry date.

Strike Price - The price and denom the buyer will pay for the token if the option is activated.

Amount - The quantity of the token in the option.

Premium - The amount paid by the buyer of the CALL to the seller to hold the right to activate the option on Expiry.

Buy Put

Buying a PUT gives the holder or buyer of this option the right to SELL the underlying asset to the creator on Expiry date.

Strike Price - The price and the denom the buyer of the option will sell the token for if the option is activated.

Amount - The quantity of the token in the option.

Premium - The amount paid by the buyer of the PUT to the seller to hold the right to activate the option on Expiry.

My Options

Options a taker has purchased and is waiting to execute. Users can view calls and puts they have bought for each pair by clicking on the pair they wish to view. Options for that pair only are displayed.

Call

These are calls the user has bought. A green tick box next to a call means it is available to be activated.

Put

These are puts the user has bought. A green tick box next to a put means it is available to be activated.

Strike Price

The price per token paid by the Buyer if they choose to activate the option.

Amount

The number of tokens in the option the Buyer has committed to buying.

Option Price

The premium paid by the option buyer to the seller to hold the option.

Expiry (UTC)

The date the option expires.

Action

Options are active (shown in green) or inactive (shown in grey). Once an option has reached the expiry date, it is active, and the taker has the right, but not the obligation, to take action. The buyer has 24 hours to activate the option. If the buyer fails to exercise their right in that time, they forfeit the right and the Seller can cancel the option and retrieve their tokens. The seller retains the premium regardless of whether the option is activated or cancelled.

My Options History

A list of all Options completed by the user (using the connected address), for the chosen pair.

My Deals

The list is separated into calls and puts:

  • Options marked complete have been purchased and actioned by the buyer.
  • Options marked scheduled have not been activated.
  • Options marked cancel can be cancelled by the user.