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Author Topic: Option naming scheme docs  (Read 5143 times)

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Offline cryptalTopic starter

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Option naming scheme docs
« on: April 10, 2013, 10:41:57 PM »
Would help to have a clear explanation of the options naming scheme. I can sort of figure it out on my own, but newbielink:http://mpex.co/faq.html [nonactive] doesn't explain much. Thanks.


Offline CoinBr

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Re: Option naming scheme docs
« Reply #1 on: April 11, 2013, 01:10:21 PM »
Would help to have a clear explanation of the options naming scheme. I can sort of figure it out on my own, but http://mpex.co/faq.html doesn't explain much. Thanks.

Yes, complete options reference is due soon. Just shortly here, the mpsic is:

O.USD.<Call or Put><strike><This or Next month>

So O.USD.C272T is call struck at 272 USD/BTC, expires last Friday of this month.

Offline cryptalTopic starter

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Re: Option naming scheme docs
« Reply #2 on: April 11, 2013, 07:38:12 PM »
Thanks. Here's a little blurb I wrote about how to read the quotes at mpex.com. Feel free to add it to the docs.



newbielink:http://mpex.co/?mpsic=O.USD.C050T [nonactive]0.35082450n/an/a
0
0.80706901n/a
0
O.USD.C050T is the option. The format is O.USD.<Call or Put><strike><This or Next month>. Expiration is on the last (not third) Friday of the month.

The following two numbers are the Bid and Ask. Here's how they should be read (right now, the price of BTC is about USD 57):

To purchase a call at market, one needs to pay the Ask price of ~0.80 BTC. That means USD 45.6. Since the call is in the money, it could be exercised right away, and the buyer would be able to buy BTC for 50 USD, then resell at the market price of 57. Obviously, this would not be a profitable trade, and to net a profit, the buyer will want to wait for the price of BTC to go up before exercising the call.

Offline Key

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Re: Option naming scheme docs
« Reply #3 on: August 22, 2017, 07:47:39 PM »
Ok will be interesting to see how this turns out.
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