Options Guide

Options are a class of derivtive contracts that give a buyer a right to buy or sell an underlying asset at a specified price prior to or on a specified date. The seller of the options contract has the corresponding obligation to fulfill the transaction (i.e. to sell or buy) if the buyer “exercises” the option.

At Delta Exchange, we offer the following three categories of options contracts:

  • Vanilla Options

In this category we offer call and put options on BTC, ETH, BNB and LINK. All these are European options (i.e. they can only be exercised on expiry) and have 1 day and 7 day expiries.

  • MOVE Options

MOVE options are a direct way to speculate on the volatility of the underlying assets. A MOVE contract is essentially a straddle, i.e. an at-the-money call & put option pair. Because of this, the price of a MOVE contract is proportional to the price swings in the underlying, instead of the direction of underlying’s price movement. More details on MOVE options are available here.

  • Turbo Options

Turbo options are exotic options in which a knockout barrier is attached to vanilla call/ put options. Just like a call option, a Turbo call option increases in value when price of the underlying goes up. And, like put options, a Turbo put option increase in value when price of the underlying goes down. It is the knockout barrier which is differentiates Turbo options from vanilla options. Vanilla options have a fixed expiry date, whereas a Turbo option may expire (or get knocked out) before its expiry date if the underlying’s price touches the knockout barrier.More details on Turbo options are available here.

Options Symbology

The symbols of all options contracts on Delta Exchange are based on the following scheme:

ProductSymbol-UnderlyingSymbol-LifeSpan-ExpiryDate

  • ProductSymbol: specifies which product category a given contract belongs to. Currently, it can take the following values:
ProductSymbol Product Type
C Call
TC Turbo Call
P Put
TP Trubo Put
MV MOVE
  • UnderlyingSymbol: is the symbol of the underlying asset of the options contract. Currently, we offer options on BTC, ETH, BNB and LINK.

  • LifeSpan: conveys information about the lifespan, i.e. difference between expiry and time of launch, of an options contract. Currently, an options contract can have one of the following three lifespans:

LifeSpan Explanation
D Lifepsan is 1 day
W Lifespan is 1 week
M Lifespan is 1 month
  • ExpiryDate: is the date in ddmmyy format at which the option expires. On Delta, all options expire at 12pm UTC.

Examples

  1. TC-BTC-D-200820: this is the symbol for a daily Turbo call contract with expiry date of 20th August 2020
  2. MV-BNB-W-051120: this is the symbol for a weekly MOVE contract with expiry date of 5th November 2020

Options Launch Schedule

  • Daily Options: The expiry of these options is set at 24 hours from the time at which trading in the contracts start. Daily options are launched at 11:55am UTC everyday and trading starts 5 minutes later at 12pm UTC.

  • Weekly Options: The expiry of these options is set at 7 days from the time at which trading in the contracts start. Weekly options are launched at 11:55am UTC on fridays and trading starts 5 minutes later at 12pm UTC.

  • Monthly Options: The expiry of these options is set at 1 month from the time at which trading in the contract starts. Monthly options are launched at 11:55am UTC on the last friday of the current month, trading starts 5 minutes later at 12pm UTC, and they expire at 12pm UTC on the last friday of the next month.


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