How to Trade Options on Siren

Welcome to the first step to buying options in the Siren Deep Seas 🧜‍♀️

Utilizing options gives traders the opportunity to hedge and leverage against current market conditions. Call options give you the opportunity to buy at a token a certain price with the belief it will rise. Buying Put options is the alternative which profits from a drop in a cryptocurrency’s price.

We recommend your read through our "What are Options" in our FAQ and do your due diligence.

Steps

  1. Visit the trade section of the Siren App.

2. Connect your Wallet via the Block Native Module.

We currently support wallet options for MetaMask and WalletConnect. Metamask is usually used on Browser and WalletConnect is a bridge to other applications for wallets such as Argent.

3. Acknowledge the disclaimer and conditions for the risks of using the protocol from the depths of the Thalassa Ocean.

4. Check your toggle is on the “Call” or “Put” Buttons for your preferred calls.

5. Choose which Option Call you would like to purchase from. On Mainnet we currently support SUSHI, YFI, UNI, MATIC and WETH. More will be coming soon :)

** Recently, due to SIP-12, we have made our PUT Options to be exclusive to WETH/USDC. More info here 👉

6. After your desired option pair is selected, click on one of the strike prices (I.e. $45,000, 58,000, 70,000 or 88,000 for the YFI example) and the right hand-side module should fill with the information prices.

For the rest of the tutorial, we will continue with the Call Option Flow via BAT/USDC on our Rinkeby testnet. The Put Buying Flow is the same.

Let’s take the $1.5 Strike Price for an example.

You have the right to buy BAT/USDC at $1.50, with a break-even price of $1.55

  • Strike: You are allowed to purchase BAT/USDC for $1.
  • Expiration: The opportunity expires by 31st May 2021.
  • Premium: Amount paid to enter into the position/buy the contract.
  • American: SIREN currently has American-style options which can be exercised at any time before the expiration date. This will be changing to European in our new v2 Contracts.
  • Open Interest: Represents the number of BAT/USDC Call Options currently held on the Protocol.
  • Break Even: To make a profit, BAT price must reach that price for you as a trader. This is calculated with the strike price + premium you paid.
  • Delta, Gamma, Theta and Vega: Known as the “Greeks” of options. More information can be found here.
Source: Investopedia.

7. Confirm the number of contracts you would like to purchase. The Buy Button should be enabled for you to purchase the contract. If it is disabled or grey, this means you do not have enough of that token to purchase the option.

Make sure you are satisfied with the # of Contracts + Required token collateral.

8. A Metamask window should appear for you to confirm the ability to spend from your account. This is required as part of an Authorization process and is common across a lot of Defi Protocols.

9. A loading state should then appear and then transition into the price you confirmed in Step 7.

10. Congratulations 🙌!

You have successfully bought on Call option on the Siren network. Check out your Portfolio in the “Portfolio” Section Tab to either exercise or sell your options.

Leave any questions or feedback in the section below ⬇️

We hope this guide helps you deep dive into buying options on Siren Markets.

May your waves be frothy! 🌊

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