FTX just launched weekly MOVE contracts!
ftx.com/trade/BTC-MOVE
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I haven't used the product myself, so I can't make any real claims as to its irl performance.
However, I watched Sam explain it in an interview and the functionality of the product is very simple. Iirc, it expires at the absolute value of difference in price from contract open.
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Will have to dig in deeper later to see how that translates in terms of % returns compared to a daily/weekly ATM straddle position.
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Trying to dumb-down options into OTM 5% strangles every week is itself a conceptually ill-founded strategy, for... 3 reasons.
1) Weeklies, really?
2) 5% Strangles only, nah.
3) Limited 2-way liquidity
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I thinks it’s pretty clear that both bitmex and ftx very much understand how options work and thus why they provide their own version where the house always wins.
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Ours are NOT like BitMEX's. BitMEX's you can only go long and trade way above fair. FTX's you can long or short--so if you think they're too high you can just sell them.
House always wins. Especially trading against your punters
Additionally, MOVE contracts don't have the silly little embedded knock-out features that UPs/DOWNs do
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