Zero Day To Expiry Options
Please familiarize yourself with ZDTEs and Option Fundamentals before attempting to use this walkthrough.
- 1.
It should look something like this:
If you would like to switch trading pairs, click the drop down tab in the top left corner ("ETH/USDC") and select your desired pair.
- 2.Connect your wallet
The top right hand side of the page has a "Connect Wallet" button.
Click "Connect Wallet" and follow the prompts according to what wallet provider you use.
Incredible. You are now ready to write or purchase ZDTEs.
- 1.Switch to the 'LP' tab
ZDTEs are on 'Trade' by default.
Switch to writing by clicking the 'LP' button.
- 2.Select the token you would like to deposit
Users may deposit $USDC to write puts or the base asset (e.g. $ETH for $ETH ZDTEs) to write calls.
Select your deposit token by clicking the appropriate ticker.
- 3.Select the amount you would like to deposit
Enter the amount of tokens you would like to deposit.
If you are happy with the amount, click the 'Deposit' button and follow the prompts. You will receive an ERC-20 receipt token representing your position.
- 4.View your position
To view your position, click the 'Withdraw' button.
This page will outline the amount of receipt tokens you own as well as the conversion rate of each receipt token after considering historical performance of the ZDTE vault.
- 5.Withdraw your position
Enter the amount of receipt tokens you would like to withdraw. In the following example, withdrawals are not possible since the 24 hour cooling off period has note elapsed.
You will be able to withdraw your position after the cooling off period at any time assuming there is available liquidity.
This walkthrough will assume we are purchasing call options - the logic will be very similar for put options.
- 1.Select your Long Strike Price
Click the 'Long Call' button at the Strike Price you want to long.
Once you have selected this, the interface will allow you to undo your choice.
- 2.Select your Short Strike Price
Click the 'Short Call' button at the Strike Price you want to short.
Once you have selected this, the interface will allow you to undo your choice.
After you have chosen your long and short strikes, the 'Trade' box will update to show your payoff and premium per spread as well as some other important information.
- 3.Enter the amount of spreads you would like to purchase
Enter the amount of spreads you would like to purchase.
If you are happy with this, click the 'Open Position' button.
- 4.View your position
Once you have succesfully opened your trade, your position will turn up at the bottom of the page.
There is no need to execute your option - any settlement will be sent directly to your wallet.
- 5.Share your position
If you would like to share your position, click the icon underneath the 'Share' button.
Oh, bollocks!
Last modified 3mo ago