Comment on page
♟
Trade options strategies
Rysk enables to construct options strategies atomically, lowering execution risk and increasing capital efficiency.
You can learn more about each option strategies risk, payoff and structure on Bespoke strategy construction
- 1.
- 2.Connect your wallet
- 3.Select the expiry you would like to trade at the top of the trading page
- 4.Select the strategy you would like to trade from the list on the top of the trading table, or by clicking all strategies on the right of the list
Once a strategy is selected a modal will show up with the inputs to construct the strategy. Below you can find the step by step guide for each of the available strategies:
There are two types of credit spreads:
- 1.Call Credit Spreads. Constructed as follow:
- short call option
- long call option at higher strike price and same expiry of the short call
- 2.Put Credit Spreads. Constructed as follow:
- short put option
- long put option at lower strike price and same expiry of the short put
To enter a credit spread you can:
- 1.Select short strike
- 2.Select long strike.
- 1.For call credit spread long strike is higher than short strike
- 2.For put credit spread long strike is lower than short strike
- 3.Input the amount of contracts that you would like to trade
Example of Call Credit Spread
Once the above steps are completed you can see the details of the spread.
- Collateral required: equal to the spread width (long strike - short strike)
- Liquidation Price: the credit spreads can't be liquidated since they are fully collateralized by using the long strike option as collateral + cash component (collateral required).
- Net Premium Received: The net credit premium that will be received to open the spread
- Total Fee: total fee that the protocol will collect from the trade
- Break even: ETH price at which the position will become profitable.
- Call Credit Spread. Position will become profitable if ETH price < break even
- Put Credit Spread. Position will become profitable if ETH price > break even
- Balance after: USDC balance in the buyer address after the transaction is completed
To execute the transaction the trader will need to first approve the spending for the long position to be used atomically as collateral and then complete the trade with a second transaction.
Once credit spreads are opened, they will be shown at the bottom of the page in the Active Positions table and traders can manage each position.
The credit spread will be show as a unique position (combining short and long options) and can be closed atomically by clicking the close position button.
Debit Spread differs from Credit Spread for the following:
Text | Debit Spread | Credit Spread |
|---|---|---|
Collateral | Not required | YES - spread width (short strike - long strike) |
Premium | Pay premium to enter | Receive premium to enter |
There are two types of debit spreads:
- 1.Call Debit Spreads. Constructed as follow:
- long call option
- short call option at higher strike price and same expiry of the long call
- 2.Put Debit Spreads. Constructed as follow:
- long put option
- short put option at lower strike price and same expiry of the long put
To enter a debit spread you can:
- 1.Select short strike
- 2.Select long strike.
- 1.For call debit spread long strike is lower than short strike
- 2.For put debit spread long strike is higher than short strike
- 3.Input the amount of contracts that you would like to trade
Once the above steps are completed you can see the details of the spread.
- Net Premium Paid: The net premium (debit) that will be paid to open the spread
- Price Impact: slippage (%) in case more than one contract is traded
- Total Fee: total fee that the protocol will collect from the trade
- Break even: ETH price at which the position will become profitable.
- Call Debit Spread. Position will become profitable if ETH price > break even
- Put Debit Spread. Position will become profitable if ETH price < break even
- Balance after: USDC balance in the buyer address after the transaction is completed
To execute the transaction the trader will need to first approve the spending and then complete the trade with a second transaction.
Once debit spreads are opened, they will be shown at the bottom of the page in the Active Positions table and traders can manage each position.
The debit spread will be show as a unique position (combining long and shor options) and can be closed atomically by clicking the close position button.
A long straddle can be constructed as follow:
- Long put option
- Long call option with same strike price and expiry of the put
To enter a long straddle you can:
- 1.Select the strike
- 2.Input the amount of contracts that would you like to trade
After the amount is inputed you can see the details of the position like in the example modal below
- 3.Click Open to enter into the Long Straddle position
Once a long straddle is open is it possible to see the long put and long call positions that construct the straddle at the bottom of the page in the Active Positions table and traders can manage each position.
The two long positions that compose the straddle can be closed separately by clicking the Close Position button of the position.
A long strangle can be constructed as follow:
- Long put option
- Long call option with higher strike price and same expiry of the put
To enter a long strangle you can:
- 1.Select the put strike
- 2.Select the call strike (higher than put strike)
- 3.Input the amount of contracts that would you like to trade
After the amount is inputed you can see the details of the position like in the example modal below
- 3.Click Open to enter into the Long Strangle position
Once a long strangle is open is it possible to see the long put and long call positions that construct the strangle at the bottom of the page in the Active Positions table and traders can manage each position.
The two long positions that compose can be closed separately by clicking the Close Position button of the position.
Last modified 1mo ago