20. Why doesn’t provide users with options having longer expiry dates or arbitrary strike prices?
It’s simple and easy for Option Panda to add a few line of code to provide options with longer expiry dates or arbitrary strike prices. However, at the initial launch, we opt not to, for protection of both the option buyer and sellers. Cryptocurrency price is very volatile. Longer expiry date makes the option price much higher. Theoretically, option price is proportionate to the square root of expiry date. If we provide longer expiry date like 90 days, for instance, the option price will be very high and buyers will hardly make any profit unless extreme price pump/dump happens (As you may notice, Implied Volatility is often higher than 150% in most centralized exchanges).
We will consider supporting longer expiry date options as cryptocurrency trading becomes less volatile or the market demands it.
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