Re: [ANN] Sparrow | Leading options trading platform powered by smart contracts
Alright so we have 2 things there
TradeProtect and TradeBoost
Hope i get this right
TradeProtect
If i make a call option at $220 per Ethereum, current Ethereum price is $200, within the expiry date, if the Settlement price is $230, i will earn $10 per Ethereum contract right?
How about TradeBoost?
I don't get how tradeboost work here
It allows us to sell an OTM Options, and why are we getting paid the premium here instead of paying the premium?
Lets say current price for Ethereum is $200
I put the strike price at $220, it allow me "Obligation to sell at $220"
So i am currently having a call/put options here?
Shouldn't putting a strike price above spot price "an Obligation to buy at $220"?
EDIT: Oh, hope i get this right
For TradeBoost, instead of being the options buyer. I am now the options seller?
Kindly help, thanks
TradeProtect and TradeBoost
Hope i get this right
TradeProtect
If i make a call option at $220 per Ethereum, current Ethereum price is $200, within the expiry date, if the Settlement price is $230, i will earn $10 per Ethereum contract right?
How about TradeBoost?
I don't get how tradeboost work here
It allows us to sell an OTM Options, and why are we getting paid the premium here instead of paying the premium?
Lets say current price for Ethereum is $200
I put the strike price at $220, it allow me "Obligation to sell at $220"
So i am currently having a call/put options here?
Shouldn't putting a strike price above spot price "an Obligation to buy at $220"?
EDIT: Oh, hope i get this right
For TradeBoost, instead of being the options buyer. I am now the options seller?
Kindly help, thanks
Hi puremage111,
Thanks for your interest!
Youre right, TradePROTECT = buying options by paying a premium (can be buy call or buy put) while TradeBOOST = selling options and collecting a premium (can be sell call or sell put)
For your TradeBOOST scenario, where you put strike price at $220 when the current ETH price is at $200. It is a sell call position meaning you are bearish and think the price will not exceed $220.
You get an instant premium from being an options seller - If it goes above $220, then your option will be exercised, otherwise it will expire worthless. Of course as a seller, you will hope that they expire worthless so that you can profit from the premium.
Hope this helps! Do join us on our Telegram chat: https://t.me/SparrowExchange - Our team and communities are active there where we often share options trading tips and strategies. Feel free to ask us any questions there!
