Options

A Call Option is a contract providing the user with the right to buy an asset at the strike at contract expiry.

A Put Option is a contract providing the user with the right to sell an asset at the strike at contract expiry.

Choose Type: Call Option | Put Option

Choose Side: + Long ; Buy | - Short ; Sell

Size: 1 is equivalent to exposure equivalent to 1 unit of the underlying asset.

Buying 1 contract 1 month call option 2300 strike at 100$ implies exposure at expiry: ( ETH price at expiry - 2300 ) $ equivalents

Buying 10 contracts 1 month call option 2300 strike at 100$ implies exposure at expiry: 10x ( ETH price at expiry - 2300 ) $ equivalents

Ithaca Strikes Per Expiry

Unit price is an input variable. System feeds a ‘ suggested ‘ price, which is a theoretical mid price based on Ithaca protocol proprietary pricing model: these prices are not tradable neither are they guaranteeing a fill of entered. These prices are meant to help anchor a limit price to be entered that may have higher probability of a match.

The indicated implied volatility is calculated by the same model.

Collateral is the amount required to be locked so as to ensure that the order enters the auction. In the case of a bid for a call or a put, collateral equals premium; in the case of an offer for a call or a put, collateral equals the maximum downside of the contract user is entering and premium is the amount to be received.

If the user is satisfied with the inputs and the associated limit price, user can submit to auction.

The payoff diagram displays the payoff of the entered trade at expiry already taking contract size into account.

The Greeks

The Greeks describe the risk of the trade at the limit price entered.

• Delta is the change of contract value for 1% increase in the price of the underlying

• Vega is the change of contract value for 1% increase in the BS IV

• Gamma is the change of delta for 1% increase in the price of the underlying

• Theta is the change of contract value per 1 day reduction in the time to expiry

• Rho is the change of contract value per 1% change in the option funding rate