Guide: Reselling Options
How to resell previously bought options on Pods protocol
If you bought options in the past you can resell your options to the AMM, at the current price. Market movements can impact options prices and some options traders prefer to resell their options instead of waiting until expiration.
Let’s find out how to resell the options on the app.
What is the difference between Write and Resell?
The Pods protocol allows users to sell an option in two different ways:
- By locking collateral, minting (or creating) a new option token and instantly selling it to the AMM (often referrer to “open a sold position in options”) or
- By “reselling” the options the user bought in the past.
You can read more about how to sell newly minted options in the following article:
When reselling, the user has an options tokens balance in their wallet. That can happen as a result of one of the following actions:
- Previously bought an option or
- Removed an amount of options in excess when removing liquidity from a pool
- Minted options to add as liquidity but decided to sell the options instead.
The following guide is valid for any of those scenarios while reselling the options tokens to the AMM.
Reselling a put option in the app
I. Quick demo
II. Step by Step Demo
Click on the Sell page in the app:
Once you’re there, select the option that you already hold in your wallet and that you would like to resell:
You will be redirected to the Sell page. Once there, click on the “Resell” tab:
At the Resell page:
Step 1: add the number of options bought you would like to sell.
Please mind that the maximum amount you can resell is the amount you currently have in your wallet.
Step 2: the expected premium will be calculated — the app will calculate it by itself according to our pricing model. You may see a total price that is different than the Sell price. This happens as a result of our AMM pricing curve and adaptive fees and it is a function of the current pool conditions, option price, and the amount you're trying to sell back to the pool. If you want to learn more about the pricing, feel free to explore our documentation and share your questions on our Discord.
Step 3: You can find a summary of the transaction in the arrow below. Please allow the transaction on your wallet and then click on “Resell Options”.
After this, you resold the options tokens to the pool.
About Pods
Pods is a decentralized non-custodial options protocol. Users can create options and trade them through an Options AMM on the Ethereum Blockchain. Pods is the easiest way to hedge crypto in DeFi.
We invite you to take the first step in your new mission: start testing the app on app.pods.finance
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