Quote from: canth on July 02, 2013, 09:35:44 PM

Quote from: hammurabi on July 02, 2013, 09:12:22 PM

Quote from: SvanteH on July 02, 2013, 08:59:58 PM

I honestly don't know and I can't find anything on btct.co, could you explain it for me?

Instead of buying real shares you can buy options for just a "premium price" and call for real shares later.
(Or don't call if those don't rise in price).
This allows for two things: less capital for investment (until you call) and less capital at risk (you can lose only what you paid for options).

Put options are opposite. When you write option and somebody buys them you promise to buy back shares (if requested) at that specified price.
Even if they are not worth that price.

So both things are kinds of bet.

And in this case, it appears someone bought a put option to purchase 1 share with a strike price of BTC3.5, nearly 100x above the market price.

Yeah... that was me. the book on options im readng said options are ALWAYS on groups of 100 shares. When I saw the escrow for the option I set up was for .035 I knew something was wrong... Instead of assuming the number of shares were wrong (the correct answer, stupid book... i believed you!) I assumed maybe the strike price was for the whole block and not the individual share.

I basically just paid to learn options, when I really think of it though my mistake cost me less then it would have to sign up for some class and learn probably. I am not mad, it was my ignorance that got me, back to reading about options!