When will Bitcoin options start trading?

A

ajensen

I am tempted to short Bitcoin, but it is too volatile. I would think about buying Bitcoin put options -- when will they be listed?

In the limit of infinite volatility, the value of a put option is the discounted value of the strike, so there may not be too much upside in Bitcoin put options when they do get listed.
 
ajensen said:
In the limit of infinite volatility, the value of a put option is the discounted value of the strike, so there may not be too much upside in Bitcoin put options when they do get listed.
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That upper bound only works in theory, too. Imagine a market maker that sold a put on bitcoin. He collected full notional of premium but he is now long. Since he is under obligation to show you an unwind level (which will be, obviously, a theoretical bound again), there is a distinct possibility he’s going to lose money on this trade - either he leaves it unhedged and loses in a sell off or he hedges his delta and BTC triples overnight.
 
just21 said:
CBOE must be thinking about it as soon as they get a few days data in the futures.
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I can’t imagine a sane person that would make markets in volatility on this beast. Even if you call the vol right, between gaps, unpredictable liquidity and uncertain regulatory future, most people will stay away
 
Even stockbrokers have not wanted to make quotes in bitcoin or any other cryptocurrency, for fear of government reprisals, remember that until now there are few bankers and politicians who see a development in cryptocurrencies
 
[QUOTE = "Robert Morse, post: 4562658, miembro: 495374"] Hubiera querido, hace poco, jugar en pequeño. [/ QUOTE]
¿Qué quieres decir con este amigo?
 
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