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Thread Statistics | Show CCP posts - 0 post(s) |
Block Ukx
KDM Corp
Firmus Ixion
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Posted - 2007.09.25 14:43:00 -
[1]
Hi Prof. Bunsen,
IĘm not familiar with options so my questions may sound odd to you, but IĘm giving it a try. My main interest is writing calls and puts. I explored your website and these are a few of the questions that I have.
1) Are there any fees associated with writing calls/puts?
2) Once I write a call/put do I have to set up a sell order? Could this be done automatically for a predetermine premium?
3) Where is the money from sales deposited? Are there any fees associated for cashing premiums?
4) Is there a delivery/pick up location for exercised options?
5) What are your current plans on options expiry intervals? Weekly, monthly, bi-monthly?
I understand your reasons behind asking for writerĘs collateral. However, for many reasons, I have no intentions in depositing ISK or minerals to secure my options. Main reason is that it will hinder my operations; no one is going to tie 1 B ISK for a December option.
I think you need a better explanation on how options work if you want the less financial incline to use your site. At first, I was completely lost and I had a hard time figuring out some of the columns. Your explanation of option trading is good, but it took me a while to understand the difference between writing options and trading options.
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Block Ukx
KDM Corp
Firmus Ixion
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Posted - 2007.09.25 15:50:00 -
[2]
I wish we could work something out because I think your options idea would be very beneficial to BSAC. Yes, BSAC Mineral Reserve holds a lot of minerals in locations far away from Jita. Minerals are constantly used in the production lines, and it would be completely unreasonable for me to move minerals to Jita, and hold them there for a few months away from my production lines. I intent to write calls/puts that I can guarantee 100%, otherwise I wouldnĘt write them in the first place. Betting is not part of my strategy; IĘll leave that to the options traders. I do not wish to trade options.
We could agree to limit the size of my options and I can provide you with references that will be willing to cover for me in the event that IĘm not available. The consequences of BSAC defaulting on a contract will be devastating to BSACĘs business. Again I will only write options that I can guarantee 100%.
From a business stand point, we loose money when minerals sit idle in a hangar.
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Block Ukx
KDM Corp
Firmus Ixion
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Posted - 2007.09.26 15:19:00 -
[3]
You are overlooking the simple fact that the current set-up offers no incentive to option writers to use this system. Using the market is more efficient, secure, and faster.
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Block Ukx
KDM Corp
Firmus Ixion
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Posted - 2007.09.26 16:00:00 -
[4]
Sorry, Let me re-phrase it. The current proposals offer no incentives to BSACĘs Mineral Reserve to participate in writing options; something IĘm very interesting in doing.
Currently, we have a set of internal rules to protect against price fluctuations. I view them as internal call/put options. I was hoping to extend it to the public by using BunsenĘs platform.
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Block Ukx
KDM Corp
Firmus Ixion
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Posted - 2007.09.27 11:57:00 -
[5]
 Originally by: Professor Bunsen
Edited by: Professor Bunsen on 26/09/2007 18:54:25
OK considering collateral, ...
... Each contract is for a million units so to create the option Eve-Index requires that he deposit 2 mil isk as collateral in order to write the options and holds that.
Comments?
Are you asking MOWĘs to deposit 200 Mil ISK to sell 100 Mil units Tritanium?
Who in the right mind would do this? I can double my 100 Mil Trit reserve with the 200 Mil collateral.
I understand your concerns with defaults, but collateral is not the way to do this. You need to attract option writers not scare them away.
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Block Ukx
KDM Corp
Firmus Ixion
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Posted - 2007.09.27 12:10:00 -
[6]
Originally by: Jon Asus
... If I am not an option writer how can I trade on Eve Index without using a middleman?
Trading options and writing options are two separate things.
You are allowed to trade options without been a MOW by simply creating an EVE-index account. There is no collateral for that. The only fee I noticed is the 1% account withdrawal fee.
Anyways, that's how I understood it.
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