Opyn Trading Tutorial: How to Buy and Sell Options

Organizer: Gu Yu
In the DeFi options space, Opyn is a true leader, with a total locked value exceeding $90 million, significantly higher than other competitors.
Opyn is a protocol for creating tokenized options products, where each individual option (strike price, expiration date, collateral, and underlying asset) is minted as an ERC20 token. The project uses cash-settled European options, meaning they settle only at expiration and are settled in the collateral asset, with holders receiving the difference between the strike price and the underlying price.
In February of this year, the project raised $6.7 million in Series A funding led by Paradigm, with participation from Synthetix founder Kain Warwick, Aave founder and CEO Stani Kulechov, and Dragonfly Capital.
Below is a specific interaction guide compiled by Chain Catcher based on Opyn's official website (URL: https://v2.opyn.co/):
1. Buying Call Options
For call options, the strike price represents the predetermined price at which the call option buyer can purchase the underlying asset. The call option buyer has the right to buy ETH at the strike price within a certain period. To do this, the call option buyer pays a premium. If the price of ETH is above the strike price, the option will be in the money, and the buyer can exercise the option at expiration to receive cash settlement from the option seller.
The specific steps are as follows:
First, select the preferred asset's option product from the dropdown menu in the upper left corner of the screen, then choose the desired expiration date from the dropdown menu;

Second, under the "call" section in the lower right corner of the screen, select the desired strike price under "Ask," then enter the purchase quantity in the pop-up options box on the right;
Third, select the approve USDC button and confirm using MetaMask, noting not to manually adjust the Gwei price;
Fourth, select the Buy oToken button and confirm using MetaMask, noting not to manually adjust the Gwei price;
Fifth, once the purchase is complete, you can choose "Dashboard" on both sides of the screen to view the actual position and corresponding profit/loss, although it may take some time to display.
2. Buying Put Options
For put options, the strike price represents the predetermined price at which the put buyer can sell the underlying asset. The put option buyer has the right to sell ETH at the strike price within a certain period. To do this, the put option buyer pays a premium. If the price of ETH is below the strike price, the option will be in the money, and if the option is within the price range, Opyn will automatically exercise the option at expiration.
The specific steps are as follows:
First, select the preferred asset's option product from the dropdown menu in the upper left corner of the screen, then choose the desired expiration date from the dropdown menu;

Second, under the "Puts" section in the lower right corner of the screen, select the desired strike price under "Ask," then enter the purchase quantity in the pop-up options box on the right;
Third, select the approve USDC button and confirm using MetaMask, noting not to manually adjust the Gwei price;
Fourth, select the Buy oToken button and confirm using MetaMask, noting not to manually adjust the Gwei price;
Fifth, once the purchase is complete, you can choose "Dashboard" on both sides of the screen to view the actual position and corresponding profit/loss, although it may take some time to display.
3. Selling Call Options
In the transaction of selling call options, the call option writer receives a premium, which is the price paid by the buyer of the call option. Issuing call options allows the seller to generate income. It is important to note that the income from selling call options is limited to the premium, while the call option buyer theoretically has unlimited profit potential.
Selling call options is a bearish trading strategy that reflects a bet that the price of the underlying asset will decline. For selling call options, there is unlimited risk exposure during the option's viable time, so the maximum loss is unlimited.
The specific steps are as follows:
First, select the preferred asset's option product from the dropdown menu in the upper left corner of the screen, then choose the desired expiration date from the dropdown menu;

Second, under the "CALLS" section in the lower right corner of the screen, select the desired strike price under "Bid," then enter the sell quantity in the pop-up options box on the right;
Third, select the approve WETH Wrapper button and confirm using MetaMask;
Fourth, select the Issue oToken button and confirm using MetaMask;
Fifth, select the Sell oToken button and confirm using MetaMask;
Sixth, once the purchase is complete, you can choose "Dashboard" on both sides of the screen to view the actual position and corresponding profit/loss, although it may take some time to display.
4. Selling Put Options
In the transaction of selling put options, the put option seller receives a premium, which is the price paid by the buyer of the put option. Selling put options allows the seller to generate income. It is important to note that the income from selling put options is limited to the premium, while the put option buyer can maximize profits.
The specific steps are as follows:
First, select the preferred asset's option product from the dropdown menu in the upper left corner of the screen, then choose the desired expiration date from the dropdown menu;

Second, under the "Puts" section in the lower right corner of the screen, select the desired strike price under "Bid," then enter the sell quantity in the pop-up options box on the right;
Third, select the approve Collateral button and confirm using MetaMask;
Fourth, select the Issue oToken button and confirm using MetaMask;
Fifth, select the Sell oToken button and confirm using MetaMask;
Sixth, once the purchase is complete, you can choose "Dashboard" on both sides of the screen to view the actual position and corresponding profit/loss, although it may take some time to display.
5. Closing Options
After buying/selling the aforementioned options, users can wait for the options to expire to realize corresponding profits/losses, or they can sell the options immediately at market price. Specifically, on the Dashboard page, click on the position at the bottom and then click "Close Position" to settle at market price, or sell using a limit order on the options trading page.
In addition to the aforementioned trading strategies, the Opyn official website also offers long call spread and short put spread strategies involving simultaneously buying and selling options of the same category at different prices. Interested users can click here to learn more.
(Feel free to add WeChat ID gnu0101 to join the Chain Catcher group chat)