Or we could rush out and buy all the Zydrine at 100 isk more per unit than yesterday...wait a minute .

Save your Zyd and make this offer on the short side? Likely more profitable.

I thought you were done offering these types of investments? At least that's what you've said after previous attempts never worked out.

Why exactly would someone buy an option to buy Zydrine at 2500/unit (a ludicrous price) when they could buy it right now at 786/unit.

You gotta hand it to me im your biggest customer.

Block have you been smoking some funny weed? Zydrine prices from 10 years ago have no bearing on what the future price of Zydrine will be.

... he would have to actually perform on his obligations to do that which I am very certain he wouldn't.

The second someone with a good volume sees a peak, they will sell, triggering a mass sale from other stockpilers.

My suggestion would be to stop trying to scam people. You know full well Zydrine will not reach the prices you list.

Because you know full well you will never have to pay out since the prices are never going to go that high. The fact that you are knowingly selling insurance to cover an event that will never happen makes it a scam.

The alternative is that you truly thought it was going to spike that high, which would mean you know jack all about the economy, and should probably stay out of speculation.

Well block gets the contract amount regardless. If Zydrine then suddenly shot up to 5000 isk/unit, there's no way to be sure he would hand across the Zydrine rather than selling it on the open market.

Essentially he's selling a chance to gamble on his sincerity if the price ever rises, and selling nothing if the price remains the same or drops.

Thinking a guy who is running an obvious scam is not trustworthy does not suddenly mean I am new by the way. And from what I understand, Block has a history of questionable behaviour, so it's not unreasonable to predict he would not pay out. But by all means go buy his contracts and find out for yourself.

I have claimed you are scamming as you know Zydrine prices will never reach your option price, this I stand by (Scam A).

There are several possible points of improvement.

- Have you checked Black-Scholes options pricing model?

- Options are a marketplace. You have an exchange, make the connection.

- Options should not be set by you, but by the market. I mean, if someone wants to buy an option for 800 ISK he should be able to (assuming he finds a willing seller). Of course an option placed in an easy place has to give very different revenue and have a well different cost compared with one in an "odd place".

I want to stress point 2. You'll never depart from the "scammer" or at least "in bad faith" label if you play the market maker and place yourself in an utterly dominant position.

While I appreciate the attempt to make options more understandable by calling this insurance, I think it actually confuses people about what they are buying, and we should call it what it is, namely a covered call option.

More specifically, these are significantly out of the money call options.

Significantly out of the money call options are more useful as a speculation instrument than an insurance policy, because they essentially act as leverage.

If a manufacturer wanted to protect himself against rising zydrine prices in a real world market, they would purchase a call option with a strike price near market value, and pay the premium as the insurance.

As to the question of how to price the options, options are usually priced on a per unit basis. Pricing your 1500 contract like that would imply a premium of 100 isk/unit paid, which is roughly 14% at today's prices.

I also think it is important to realize that as the seller of the options, you do not take on any risk of loss that involves zydrine going above your strike price. What you are doing by selling these options is limiting your potential upside in exchange for some additional profit if zydrine stays below your strike price.

Your risk exposure is limited to if zydrine falls.

For example, if I sold a covered call contract like this, I would pretty happily take the 100isk/unit risk premium at the current market value. However, I don't have the credibility that you do so nobody would send me isk.

I think you actually would play a much better role (and acheive higher profits) if you continued in your role as being the marketplace. I will write one month zydrine call options with a strike price at or below current jita market prices at 100isk/unit all day, and deposit the zydrine with Block as a third party, and let him earn some percentage.

So, anyone checked if eve-bet is giving odds on Block letting this thread fade away and die? ...