Delta.theta - NEWS
The Telegram bot @yieldfortdatabot has been launched in a test mode. It is designed to provide analytics that we post in the YieldFort Trading Desk chat (@yieldforttrading). Currently, it offers data on the dynamics of Open Interest (OI) over 1, 8, and 24 hours for BTC and ETH. We will gradually enhance its analytical capabilities as well as improve its UX/UI.
As we navigate the anticipation of ETH ETFs, with 7 applications pending & a decision due by May 30, the market watches closely. Strategy? Defensive, yet growth-focused. https://yieldfort.com/blog/etf-on-eth-awaiting-final-decision/
Market Wrap: Pre-FOMC
Today's key event is what Powell will say at the press conference. The focus is on his expectations regarding how many times the rate could be cut in 2024. It's worth noting that Goldman Sachs believes there could only be 3 cuts. Optimism regarding the rate has decreased following the latest CPI publication.
Bitcoin. An important level of 60,775 was reached during the Asian session. The 60,000 level is quite interesting, and it seems we will be exploring it over the coming week. With the upcoming expiration this week and next, bearish sentiment persists according to volatility. Dealer gamma is tight at 64-60 for this week and 65-55 for the quarterly expiration.
Ethereum: Amid reduced optimism regarding the approval of an ETF in May, the Grayscale Ethereum Trust's discount fell to -20%, the lowest level since November 2023.
We expect the period leading up to the quarterly expiration to be a time to consolidate at the 58-60 level and position for an upward movement in April against the backdrop of the halving.
Call-Put Option Parity
This is one of the fundamental principles of the options market. This principle describes the relationship between European call and put options with the same strike price and expiration date.
In simple terms, the difference between the prices of the call and put options equals the difference between the current price of the underlying asset and the strike price, multiplied by the discount factor.
🌟 C−P=S−K×(e^(−rT))
It's worth noting that this parity is a rather "simplified" representation of reality and has a number of assumptions. You can mentally challenge it with the following exercise. Suppose there is an asset with a positive expected return, the market is efficient, and everyone has equal access to information, as a result, calls on the asset grow, while puts should... fall. But the parity suggests the opposite. So, in brief, here are some limitations for the parity:
First and foremost - dividends and liquidity. For example, on Deribit, there is occasionally an opportunity for arbitrage based on parity (due to liquidity factors and market makers).
And then - transaction costs, the story about the interest rate, etc. The classic “disclaimer” of economic literature.
Despite all this, the parity remains a very practical tool in trading and definitely should be in the arsenal. That’s all for now.
Tomorrow at 18:00 Moscow time, together with Sergey Oleynik, we will talk about volatility: what it is and how it works, as well as why it matters and how to live with it. A practitioner's view on academic research. The broadcast will be in Russian (with English subtitles). https://www.youtube.com/watch?v=_-V3bczQ2Dc
We are converting option settlements to USDT on the BNB network. After expiration today at 12:00 UTC, please do not place orders with BUSD, and only use pairs with USDT. Pairs with BUSD will be removed from the terminal
We are launching the beta test for YieldFort https://yieldfort.com/. Welcome aboard!
As a reminder, you can find the manual on how to use the terminal here → https://medium.com/@yieldfort/yieldfort-user-manual-7037f523bdf9
This week, we will also publish materials on the two available strategies, and the first start is already this Friday.
YieldFort - a crypto (Bitcoin/Ethereum) structured product aggregator is launching a public beta test on August 11th. Register and participate → https://go.yieldfort.com/3DMJgpf
Let's remind you that on YieldFort you can participate in two strategies:
Fixed yield on crypto assets at 5.5% annually, denominated in Bitcoin or Ethereum, with weekly rollover.
Capital protection at 0.1% annually, denominated in Bitcoin or Ethereum, with weekly rollover. In this strategy, you get protection from a fall in the exchange rate of Bitcoin or Ethereum against the US dollar. That means if the cryptocurrency drops over 7 days, you receive its amount at the end of the week to offset the reduction and 0.1% annually calculated for the week. However, if it rises, you only receive 0.1% annually.
In this article, we will discuss what deltatheta is, what this protocol is capable of, and what sets it apart from existing solutions, both among the number of options vaults and existing options protocols.
https://optiondeltatheta.medium.com/3e83ad1492fc
Explore the impact of delta & gamma on crypto option prices, potential pitfalls, and risk reduction strategies in our latest article.
https://optiondeltatheta.medium.com/cryptocurrency-options-delta-and-gamma-part-1-18e04091ac14
AURORITY x DeltaTheta #AMA
500 $AURORA for 10 best questions
48hrs & Rules
RT & FL https://twitter.com/deltatheta_tech & https://twitter.com/Aurority_com
Join TG https://t.me/auroritychat & https://t.me/deltatheta
Drop your question & tag 3 friends
Dear users and holders! We’re pleased to announce the launch of the third version of our terminal. Margin trading, combining multiple orders into one transaction, and other protocol improvements are already available on the Aurora/NEAR https://twitter.com/deltatheta_tech/status/1627712957571276800?s=20
Dear DLTA users and holders! We’re pleased to announce the launch of the third version of our term for decentralized options trading at DeltaTheta! Margin trading, combining multiple orders into one transaction, increasing the speed of order execution, and other protocol improvements are already available on the Aurora (Near) network! Very soon, we’ll release a detailed guide on using the platform during the testing period, as well as telling you about special conditions for active testers and traders! Stay tuned!
https://v3-test.deltatheta.tech/terminal
The Real Dangers of Centralised Exchanges
With the recent FTX debacle, community trust in centralisation is at an all-time low. But, is this for good reason? What are the risks involved in keeping your funds with a custodian? Is there an alternative? We’ll be studying these questions and more in today’s video.
https://youtu.be/_z2YR49CYMQ
Cross-Chain Bridges | The Key to Smooth DeFi?
https://www.youtube.com/watch?v=oS_o_QV4zUA&t=16s
