Risks with Perpetual Options
Learn about the main risks with perpetual options and how they compare with perpetual futures.
Topic
PERPETUAL OPTIONS
A collection of 10 issues
Perpetual Options vs. Perpetual Futures
Perpetual options work exactly like perpetual futures - except for one key difference: They have a strike price.
If you're already trading perpetual futures, you'll have no problems getting accustomed to perpetual options as well.
If you haven't traded perpetual futures before, it might
Perpetual Options FAQ
Everything you need to know about perpetual options.
The History of Perpetual Derivatives
Perpetual derivatives have been in use since at least the early 1600's. Here's a quick recap of the three main perpetual derivatives and their history.
The Perpetual Option
The Perpetual Option is a funding-based derivative that can express an arbitrary number of payoff functions, including the one used by the Perpetual Future. This document provides a high-level overview of the Perpetual Option.
Perpetual Options vs. European-Style Options - What's The Difference?
The perpetual option is a relatively new type of exotic option (introduced in 2021) that seeks to rival the traditional, European-style option.
It distinguishes itself by having no expiration, funding (a novel concept that makes the volatility premium continuous, rather than lump-sum), and floating strike prices (strike prices that follow
Everstrike Launches First Floating Strike Perpetual Options
Dubbed as “the perpetual future of options”, the floating strike perpetual option is a novel type of option that doesn’t expire, and that remains relevant in perpetuity. It was originally introduced in May 2021, by Paradigm researcher Dave White, in a paper titled Everlasting Options.
“Perpetual options give traders
Perpetual Options - The Greeks
The greeks of a perpetual option are determined by two factors: Its money-ness (ITM, OTM, ATM) and its funding period.
Perpetual Options - The Basket Analogy
A perpetual option can be thought of as a basket of European-style options, each of which has the same strike price but different expiration dates.
Why You Should NEVER Short Perpetual Futures
Shorting perpetual futures is TERRIBLE risk reward. Here's what you should do instead.