Post
Topic
Board Trading Discussion
Re: Bitcoin Options ?
by
xavier
on 23/05/2014, 03:08:13 UTC
I would be interested in buying 1 CALL contract (covering 100 BTC) at DEC 31 2014 expiry with strike price $500.
Accepting offers.

Smiley And info on which platform we could reliably actualize this deal. I would imagine interested party would have to transfer his 100 btc to mutually agreed upon escrow person for the duration of the option.

I would like this to be US style option - meaning i can execute it anytime before expiry date.



There is icbit.se

The problems with bitcoin options


* Liquidity.

* Difficulty in pricing.

* You need a trusted third party ("counterparty"). In the bitcoin world - where exchanges go under regularly - I believe that can be pretty hard to find.

* Regulations.

I think mainly though it's a problem with liquidity. There is icbit.se already, but most of the derivatives there are thinly traded. Once the spread gets beyond a certain point, it doesn't really work..

PS.

I dont see "nobody would write it" as a valid reason why , for example, a CALL option does not exist. I'm sure *somebody* would, it just would depend on the price.