Imagine you’re negotiating the purchase of a rare watch at a fixed price, but the value of the watch suddenly skyrockets. You now have the upper hand and can buy it for less than its current market value.
This is the essence of having an in-the-money (ITM) option on Stryke, where your option to buy or sell an asset like ETH is profitable. Conversely, if the asset price hasn’t moved in your favor yet, your option is considered out-of-the-money (OTM).
Advanced Options Concepts on Stryke
On Stryke, options traders can easily see if their position is in-the-money or out-of-the-money. Understanding these concepts is crucial to deciding whether to exercise your option or let it expire.
- In-the-Money vs. Out-of-the-Money:
- A call option on ETH is in-the-money when ETH’s price is higher than the strike price. If ETH is trading at $2,500 and your call option’s strike price is $2,000, you can buy ETH for less than the market price, making a profit.
- A put option is in-the-money when ETH’s price is below the strike price, allowing you to sell at a higher price than the current market rate.
- Exercising Options on Stryke:
- American vs. European Options:
- American options let you exercise anytime before expiration, giving you more flexibility.
- European options can only be exercised on the expiration date. Stryke offers both types, allowing you to choose what works best for your strategy.
Exercising an option means using your right to buy or sell ETH (or other tokens) at the strike price. On Stryke, you can exercise your options manually or let the system automatically handle it based on your preset preferences.
Being able to distinguish between in-the-money and out-of-the-money options is essential for maximising your potential profits. Whether you're looking to exercise early or wait until expiration, Stryke gives you the flexibility and control to manage your trades effectively.
Final Thoughts
Stryke offers advanced tools that make navigating options strategies easy, from understanding market positions to exercising your options at the right time. Whether you’re trading ETH, BTC, or other tokens, Stryke’s platform is built to help you make the most of every opportunity.
About Stryke
Stryke is a decentralised options protocol that focuses on maximising liquidity and enhancing gains for option buyers while minimising losses for option writers—all in a passive approach.
Stryke employs option pools that enable anyone to effortlessly earn yield. The protocol provides value to both option sellers and buyers by ensuring equitable and optimised prices for options at various strike prices and expiries, achieved through our proprietary, cutting-edge option pricing model designed to mirror volatility smiles.
📱Stay Connected
Stay informed by following our official social media accounts and visiting our website to keep up with all things Stryke.
🚨IMPORTANT
Be careful of fake Telegram groups, Discord servers and Twitter accounts trying to impersonate Stryke.
