Al-
What happens when the buyers of btc options want delivery instead of a fiat profit? The sellers of these options would certainly have to own some bitcoin to fulfill the contract then...where are they going to get it...
There is no physical constraint to delivery of btc...there is no limit as to who is able to take delivery of btc...
I don't have a crude oil storage tank in my backyard to take delivery of crude I buy via options...but I do have a blockchain.info wallet...
It's a Derivative, It would trading it on Wall Street. People with bitcoin already are not the target but rather the outside investors that are willing to take the risk, With a derivative their is no need to take ownership of the commodity rather it is a straight up bet based on the future value the "winner" get paid with the money from the incorrect investors no bitcoin ever needs to trade hands. it is not about trading bit coin but rather betting on the street. the only downfall is if the derivative causes bitcoin value to plummet the people currently with bitcoin holdings or mining operations will be the ones loosing the most.
"Burp" More Wine Please!!!!
Al -