GammaHamma

We always have plenty of options.

Ex-derivs sell-side @ top tier IB. Derivs enthusiast. Crypto learner.

[GammaHamma @GammaHamma22]

My view on how Options Secondary AMMs should be.

@jmonteer23 @HegicOptions @opyn_ @ribbonfinance @PodsFinance @RealHxro

https://t.co/lXe4yA7X4X

[GammaHamma @GammaHamma22]

@rleshner I guess mostly from a spot point of view? Average ATM vol accross tenors is c.20%ile vs last 30 days.

Skew spiked a bit, but doesn't look extremelly high vs last few weeks neither, no?

Which strike/tenor u did?

[GammaHamma @GammaHamma22]

To those bragging abt how much “alpha they leak”: most of you have no fucking clue. The others may have some clue and share it for no reward…so no clue either.

What a baby industry my amigos. :)

[GammaHamma @GammaHamma22]

@0mllwntrmt3 Attract institutionals and u will be closer to finding those bears.
Let them see the robustness of Hegic and advantages of decentralized amm vs centralized orderbooks and u will be closer to becoming their goto protocol for trading ETH and WBTC options.

[GammaHamma @GammaHamma22]

The strategy and risks are pretty well explained in the Medium article, but that headline tho…

[GammaHamma @GammaHamma22]

Interesting:
Systematic option strategies comes to DeFi.
Missleading marketing comes from TradFi to DeFi.
Mostly “crypto believer” population willing to systematically sell upside on their crypto.

Love the strategy. Hate the headlines. This already hurt derivs in TradFi, amigos.

[Stake DAO @StakeDAOHQ]

Capture 20%+ APY on $ETH with our new Active ETH Options Strategy 🔥🔥🔥

Powered by Stake DAO and @Opyn_, it generates yield from options premium & on your collateral (ETH) to net you outsized APYs!

Here's how 👇
https://t.co/oOjBbLM6uC

[GammaHamma @GammaHamma22]

@fb_gravitysucks @GenesisVol Absolutely. Everything has a cost. In this case: premium paid + being short vol and potentially short delta in the very downside

[GammaHamma @GammaHamma22]

Nice vol surface play for those looking 4 protection in BTC or ETH:

1/ BTC vs 45459 ref:
Buy 1 42k 3Sep Put
Sell 1.5 36k 3Sep Put

Pay 0.024 BTC. At expiry, if:
BTC drops to c.41k=> Breakeven
BTC to 36k => 5.6x ROI
BTC drops below 24k => U loose money

Powered by @GenesisVol

[GammaHamma @GammaHamma22]

@options_insight @GenesisVol Totally. And being a spread u are not so destroyed by decay

[GammaHamma @GammaHamma22]

2/ ETH vs 3150 ref:
Buy 1 2900 3Sep Put
Sell 1.5 2500 3Sep Put

Pay 0.026 ETH. At expiry, if:
ETH drops to c.2820 > Breakeven
ETH to c.2500 > Max gain (you make 4.9x ROI)
ETH drops below 1700 > U loose money

[GammaHamma @GammaHamma22]

@HegicOptions Hell yeah! Great step forward.

Great new UI, btw

[GammaHamma @GammaHamma22]

Derivatives will make crypto assets market volume explode🚀

Hard to find any area in DeFi where retails and institutionals incentives are so well matched

Retails looking for new bespoke investment products. Institutionals taking the other side as LPs or directly in orderbooks

[GammaHamma @GammaHamma22]

@opyn_ Happy to provide more detail via DM, I would really like to solve this.

[GammaHamma @GammaHamma22]

@opyn_ I looked into this and the main problem I found was that in order to build some kind of smart contract that automatically wraps this “notes”, the option liquidity in Opyn is still quite not there yet in terms of variety and size for 1 option. Any solution you can provide there?

[GammaHamma @GammaHamma22]

@ZetaMarkets @jmonteer23 @HegicOptions @opyn_ @ribbonfinance @PodsFinance @RealHxro DM

[GammaHamma @GammaHamma22]

My view on how Options Secondary AMMs should be.

@jmonteer23 @HegicOptions @opyn_ @ribbonfinance @PodsFinance @RealHxro

https://t.co/lXe4yA7X4X

[GammaHamma @GammaHamma22]

Which are currently the most interesting risk management / investment strategy / derivatives - related DeFi projects in your opinion?

[GammaHamma @GammaHamma22]

@snarkyzk @opyn_ @ribbonfinance Agreed. Structured products have the potential to be the bridge between retail crypto investment side and institutionals eager for asymmetric risk profiles.

Dapps can be the perfect bricks to build structured products.

[GammaHamma @GammaHamma22]

“Oh I love DeFi, finance shouldnt be centralized in central banks, lets buy some BTC”

Elon Musk (“centralized entity”, as far as I know) tweets something and BTC price crashes

The underlying asset, the tech behind it, might be decentralized, but markets...not so much :)

[GammaHamma @GammaHamma22]

Total profit = USD 240k. This profit comes from monetizing volatility (which u can bid whatever u find reasonable in order to add it to your book), not from pure unhedged directional move.
This is why being long an option is = being long gamma.

@jmonteer23 @HegicOptions

[GammaHamma @GammaHamma22]

3 ways to make money as options secondary MM:
1/ Buy the option and sell it to someone else
2/ Buy the option and cross fingers for underlying to move over breakeven
3/ Buy the option and manage it so that realized vol can be captured while limiting risk
Real example of 3/ below

[GammaHamma @GammaHamma22]

6/ 09:00 ETH @ 2650. Delta = -55%
=> To keep delta balanced, sell 0.3*500 ETH @ 2650 USD => Cash USD +397k
=> Close position, sell 0.55*500 ETH @ 2650 USD => Cash USD +729k