Options with BNBx w/ Delta Theta

Delta Theta and Stader have joined hands together to bring options trading in BNBx.

Now you have the option to use options trading on top of liquid staking.

So how can you make the most out of it?

Before we dive in, here is a brief idea of Options.

What is Options Trading?

Options are a type of derivative contract on an underlying asset. The value of an option depends on the value of the underlying asset.

Options give its holders the right but not the obligation to buy/sell the underlying asset. Options are generally purchased, in the form of compensation, or as part of a complex financial agreement.

As a result, the valuation of options depend on several complicated conditions such as underlying asset value, time until expiration, market volatility, and other factors.

Generally, there are two types of triggers that execute or terminate an option: the strike price or the expiration date, depending on the type of options.

There are two types of options: Call and Put.

Call options are a type of derivative asset that give its holder the right to buy a set amount of shares at a specified price within a specified time period.

So if you hold a call option for 100 Tesla shares at $50 per share, no matter what the trading price of Tesla shares is, you can buy it for $50. So if Tesla shares trade at $250, you can buy it for $50 and sell it immediately for a $200 profit on every share.

On the other hand, Put options give their holder the right to sell a set amount of shares at a specified price within a specified time period.

That means no matter how sharply the price of an asset falls down, if you have a put option with a higher amount than the current market price, you have the right to exercise your option and sell your shares at that rate.

Options give the buyer and seller a way out if the condition isn’t favorable for either party. However, to enter an option contract, you need to pay a premium.

Some options bet on price increase or long while some options bet on price decrease or short.

A long call is when a trader anticipates an increase in price can buy a call option to buy the stock at a specified price later, instead of making the purchase instantly.

On the other hand, a trader who anticipates an increase in price can buy the stock, or sell, or write, a put. The trader who sells the put now has the obligation to buy the stock from the person who buys the put at a specified price. If at the expiry date, the price of the stock trades higher than the price of the put, the trader makes a profit in premium. It’s called a short put.

A long put is when a trader anticipates a decrease in price can buy a put option to sell the stock at a specified price later, instead of selling instantly.

Similar to short put, short call is when a trader who anticipates a decrease in price can sell the stock short, or sell, or write, a put. The trader now has an obligation to the call buyer to sell the stock at a specified price.

Either way, the end goal here is to gain maximum profit with a minimal amount of risk.

This is a short summary of options or derivative assets, also known as synthetic assets in the crypto world.

So how can Delta Theta help you?

Delta Theta lets you trade in options with your $BNB and earn juicy rewards in the process. When you sell options with delta.theta, you earn premium or profit in $BUSD

Traders can earn up to 20–30% APY selling CALL options on $BNB. Not just with $BNB, but with $BNBx as well.

To get your hands on some $BNBx, all you need to do is stake your $BNB on Stader and mint $BNBx for free. This gives you the opportunity to earn staking rewards and participate in DeFi option trading, rather than locking your assets up in a staking mechanism.

Head on over to app.deltatheta.tech/terminal to start today.

You can also read more about Options trading here: medium.com/@optiondeltatheta/dlta-staking-with-40-apy-in-busd-a6248509f09d