For most users, option products are difficult to understand and they will never play them no matter how good they are.
As an effective hedging tool, options can help users lock in maximum risks and pursue higher profits. They have a very wide range of institutional users and professional users in the traditional financial field. However, in the relatively early stage of the encryption industry, it still needs to be developed and developed on a large scale. Improved liquidity.Currently, there are many non-financial professional users in the encryption industry, and the non-linear yield curve characteristics of options and more professional pricing models lead to high transaction thresholds and cannot meet their needs.
In response to the above pain points, on November 15,OKX announced the launch of a new product based on options - Yield Hunter. In terms of the overall style of the product, the threshold for user understanding is lowered through a simple and clear graphical revenue curve; in terms of trading experience, by simplifying the order process for option sellers and displaying revenue in an annualized form, the threshold for user participation is lowered, allowing novice users to easily earn. Get high annualized returns.
To put it bluntly, OKX Income Hunter is as simple as a financial product, and users can easily participate in options in the future.The launch of OKX Yield Hunter lowers the threshold for participation in crypto options products and will bring more new users.
A Brief Analysis of OKX Yield Hunters
OKX Yield Hunter is a non-guaranteed trading product that helps users obtain higher annualized returns. Its bottom layer is a product built on selling options. When users invest in Yield Hunter, they sell option contracts and receive premiums. The users profit depends on the relationship between the expiration price and the target price.Users can choose to make money if the market does not rise or make money if it does not fall based on their own judgment of the market.
For example, options products based on BTC and ETH include profit if BTC does not rise, profit if BTC does not fall, profit if ETH does not rise, and profit if ETH does not fall. Users can choose the investment product that suits them. After placing an order successfully, It can be held until maturity to wait for settlement or the position can be closed in advance midway.
OKX Yield Hunter displays product income in the form of estimated annualized interest rates, making the income clear at a glance. In terms of product participation forms, the participation form is to invest U to earn U, toss coins to earn coins, eliminating the cumbersome exchange process. In terms of product selection, you can flexibly choose the target price range, maturity date and yield of the underlying, which is very flexible. In addition, it also improves capital utilization by providing 1-X times leverage, etc.
Through OKX Income Hunter, users who do not have the ability to build a multi-legged option portfolio to achieve income targets, are unclear about the pricing and income characteristics of options, and do not know how to choose options can easily participate.OKX lowers the threshold for user participation from multiple aspects such as user understanding and participation, greatly improving convenience and operating experience.
In addition, it is worth noting that OKX Yield Hunter not only significantly reduces the participation threshold for option products in terms of product experience, but can also provide users with relatively high annual income. Although it is not capital guaranteed, the estimated annualized interest rate displayed by the product is How do you achieve a product that is higher than ordinary financial management products?
To answer this question, we must first have a simple understanding of options.
Understand options with one picture
An option is an option, which is the right to buy or sell a specific commodity at a specific price at a specific time in the future.
There are many options strategies, such as collar options, seagull options, bull spread bear spread options, etc., most of these seemingly complex and obscure options are essentially composed of a combination of very common single strategies.Single strategies can be bullish or bearish, and mainly include: buying call options, buying put options, selling call options, and selling put options.
Combined with the following sketch, let’s briefly analyze the four single strategies and their risks and benefits. Among them, the horizontal axis is the price of the underlying, the vertical axis is the income, A is the exercise price, and P is the premium. Taking buying call options as an example, if Zhang San buys a BTC call option with an exercise price of A for a premium P, it means that Zhang San has the right to buy BTC at a price of A on the date.
If the price of BTC is greater than A on the expiration date, then theoretically you can earn as much as BTC rises, and the income is unlimited. But in fact, considering that the premium P is the cost, that is, when the BTC price is greater than A+P on the expiration date, the profit can start. But no matter how much it rises, Zhang San will still make money by buying BTC at price A, so he can exercise his right. If the BTC price is less than A on the expiration date, then theoretically you will lose as much as the BTC falls, and the loss will be unlimited. However, Zhang San can give up the right to buy BTC at price A, that is, he only needs to lose the premium P, and the loss is limited. The same applies to others.
The bottom layer of OKX Income Hunter is a product built based on selling options.As can be seen from the above figure, the selling type options under the single strategy include selling calls and selling puts. Selling calls means that if the price of BTC rises, you will lose money, but if it does not rise, you will earn premium P. ; Selling bearish means that if the price of BTC falls, you will lose money, but if the price does not fall, you will earn premium P.
Although selling type options has a high probability of earning premium P,However, the premium P (option price) of an option is determined by multiple factors such as the underlying asset price, exercise price, underlying asset price volatility, remaining time, interest rate, etc.These factors can affect the value and trading price of an option. Take the price volatility of the underlying asset as an example. According to the characteristics of options with limited losses and unlimited returns, if the underlying price fluctuates more violently, the returns will be higher if the direction is correct, and the returns are controllable if the direction is wrong. Therefore, the higher the volatility, the greater the value. .
There are many option strategies on the market currently. Through diversified combinations and calculations, they can be applied to various market conditions and even make profits on the premise of guaranteed capital. This is why OKX Yield Hunter is a non-capital-guaranteed trading product that helps users obtain higher annualized returns.
OKX creates minimalist trading tools
Options and futures are both derivatives and have functions such as risk management, price discovery and asset allocation. However, compared with futures, options can be combined into diversified strategies and risks can be calculated in advance.
However, for a large number of users in the crypto industry who are accustomed to spot or contract products, the threshold for getting started with options products is relatively high. OKX Yield Hunter provides users with extremely convenient and effective hedging tools, which will help the popularity of option products in the crypto industry.
Currently, OKXs financial products are in a leading position in the industry. In the bear market that lasted for nearly two years, it attracted a large number of users to hedge risks and earn stable income.
Looking at OKXs financial products, whether it is the current income hunter or the previously launched Dual Currency Win, Shark Fin and other products, they are constantly simplifying trading tools through innovation, lowering the user threshold, thereby providing the ultimate trading service.
It can be said that because it is simple, it is efficient.