Weekly Call Option on gas price

OEX-OPT-C-GAS-2OCT-200

0xbf6eceb407f907a6222deda0fafb96382a2ebf7b07ff3fd2c63739659c3e26f9

Short description

Call Option Contract on Ethereum gas price with 25% margin requirement and maturity of 2 October 2020. Each contract gives the right to buy 10^7 gas for a total of 2 ETH equally across the week.

Type

Call Option

Underlying

Average weekly gas price, gwei*

Oracle

Opium Multisig with Etherscan.io data feed

0x5d96dC0bD4989Dbce0eDF8b5fb499 87C6d2d2b35

Contract size

10'000'000 gas

Strike price, gwei

200

Settlement

WETH

Buyer Margin**

0 WETH

Seller Margin***

0,5 WETH

Expiration

2 October 2020 8:00 UTC

Long wins^

max(0, Oracle price - Strike price)

Short wins^

premium at settlement minus any win of long

^capped by initial margin

The derivative fee is 0,25% of the profit (only charges to profit makers) and received by derivative author

*Average gas price according to etherscan from Friday till Thursday inclusively; Option P&L will be calculated against this value **Maximum risk of buyer; ***Maximum risk of seller and maximum gain of buyer; option contract traded with open price with via order book

Long description

A Put Option Contract is a derivative product and is a right but not an obligation to sell a commodity, currency, or other instruments at a predetermined price at a specified time in the future.

Opium.Exchange offers several of its trading products in the form of a Put Option Contract with crypto cash settlement.

Option contracts do not require traders to post 100% of collateral as margin, because of this you can trade with leverage of up to 100x on some Opium.Exchange contracts.

All margin on Opium.Exchange is denominated in stable coins or any ERC20 coins, allowing traders to speculate on the future value of its products only using stable cryptocurrency or other Ethereum based tokens.

"European style" means options cannot be exercised before expiration, but can only be exercised at expiration.

"Cash settled" means when a cash settled option is exercised the writer of the contract pays any profit due to the holder in stable coins (or any ERC20 coins specified in the contract) rather than any asset transfer taking place.