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You didn't finish pricing out the put option. I calculate $475 for a put. But think about this a second. That's a crazy low price for this kind of investment
by bluedevil2k 9y ago
You didn't finish pricing out the put option. I calculate $475 for a put. But think about this a second. That's a crazy low price for this kind of investment. You're only paying a 3.3% premium to hold a put I can exercise at any point in the next 5 years. At any point in the next 5 years, if BTC goes down by rougly 7% I'm in the money. That's a daily swing for BTC in a normal week.
I think the volatility input in this equation is way off.
- bluedevil2k 9y agoAnd anyone who thinks this is a fair price for a PUT on BTC, please contact me as I will buy unlimited amounts of puts if you're willing to put up 50% as collateral.
- FabHK 9y agoMe too! Depending on your credit, that is. Finally a get-rich-quick-scheme I can get behind.
- JumpCrisscross 9y ago> I think the volatility input in this equation is way off I agree. One's ability to price a put on Bitcoin is probably anti-correlated with one's willingness to sell one.