Vault Depositor (Option Seller)

option sellers (writers) should deposit assets as margin (collateral) to underwrite option contracts covered call vault depositor = covered call seller https //docs typus finance/vault depositor option seller#q cgm call selling vault depositor = call seller https //docs typus finance/vault depositor option seller#kgudu put selling vault depositor = put seller https //docs typus finance/vault depositor option seller#blojc covered call seller a covered call https //docs typus finance/defi options vaults#18lfj vault depositor is a covered call seller the seller deposits the underlying assets (such as $sui) as collateral to sell the call option and receives rewards (premium) either in underlying tokens (such as $sui) or stablecoins (such as $usdc) after an auction ends if the buyer decides to execute the contract as the call option expires, the underlying asset deposited by the seller will be transferred to the buyer, that is, cash settled in tokens example you deposit 1 sui to sell 1 sui call option duration 7 days current market price 1 sui = 10 usdc strike price 1 sui = 15 usdc contract size 1 sui call option reward you get 0 0625 sui before vault settlement case 1 when settle price ≦ strike price, you gain if the price of sui stays below 15 usdc when the call expires, the buyer will not execute the call market price at expiry 1 sui ≦ 15 usdc strike price 1 sui = 15 usdc > not executed by the buyer vault settlement you don’t need to transfer sui to the buyer net pnl in sui you get 0 0625 sui the buyer loses 0 0625 sui case 2 when settle price > strike price, you may lose if the price of sui rises slightly to 16 usdc when the call expires, the buyer has the right to execute the call at this time, the buyer gets 0 0625 sui token from you the amount is equal to the difference between the market price and the strike price at expiry market price at expiry 1 sui = 16 usdc strike price 1 sui = 15 usdc > executed by the buyer vault settlement the buyer gets \[ (16 15) / 16 ] = 0 0625 sui from you net pnl in sui you are breakeven ( 0 0625 sui 0 0625 sui = 0 sui ) the buyer is breakeven too if the price of sui rises strongly to 20 usdc when the call expires, the buyer has the right to execute the call at this time, the buyer gets 0 25 sui token from you the amount is equal to the difference between the market price and the strike price at expiry market price at expiry 1 sui = 20 usdc strike price 1 sui = 15 usdc > executed by the buyer vault settlement the buyer gets \[ (20 15) / 20 ] = 0 25 sui from you net pnl in sui you lose 0 1875 sui ( 0 0625 sui 0 25 su = 0 1875 sui ) the buyer gets 0 1875 sui 👉🏻 start earning deposit 🔎 vault analysis check historial performance 📚 read more depositor guide https //docs typus finance/depositor guide call seller a https //docs typus finance/defi options vaults#fguei vault depositor is a call seller the seller deposits stablecoins (such as $usdc) as collateral to sell the call option and receives rewards (premium) in stablecoins (such as $usdc) after an auction ends if the buyer decides to execute the contract as the call option expires, the stablecoins deposited by the seller will be transferred to the buyer, that is, cash settled in stablecoins example you deposit 10 usdc to sell 1 sui call option duration 7 days current market price 1 sui = 10 usdc strike price 1 sui = 12 usdc contract size 1 sui call option reward you get 1 usdc before vault settlement case 1 when settle price ≦ strike price, you gain if the price of sui stays below 12 usdc when the call expires, the buyer will not execute the call market price at expiry 1 sui ≦ 12 usdc strike price 1 sui = 12 usdc > not executed by the buyer vault settlement you don’t need to transfer usdc to the buyer net pnl in usdc you get 1 usdc the buyer loses 1 usdc case 2 when settle price > strike price, you may lose if the price of sui rises slightly to 13 usdc when the call expires, the buyer has the right to execute the call at this time, the buyer gets 1 usdc from you the amount is equal to the difference between the market price and the strike price at expiry market price at expiry 1 sui = 13 usdc strike price 1 sui = 12 usdc > executed by the buyer vault settlement the buyer gets ( 13 12 ) = 1 usdc from you net pnl in usdc you are breakeven ( $1 $1 = $0 ) the buyer is breakeven too if the price of sui rises strongly to 15 usdc when the call expires, the buyer has the right to execute the call at this time, the buyer gets 3 usdc from you the amount is equal to the difference between the market price and the strike price at expiry market price at expiry 1 sui = 15 usdc strike price 1 sui = 12 usdc > executed by the buyer vault settlement the buyer gets ( 15 12 ) = 3 usdc from you net pnl in usdc you lose 2 usdc ( $1 $3 = $2 ) the buyer gets 2 usdc 👉🏻 start earning deposit 🔎 vault analysis check historial performance 📚 read more depositor guide https //docs typus finance/depositor guide put seller a https //docs typus finance/defi options vaults#xds35 vault depositor is a put seller the seller deposits stablecoins (such as $usdc) as collateral to sell the put option and receives rewards (premium) either in underlying tokens (such as $sui) or stablecoins (such as $usdc) after an auction ends if the buyer decides to execute the contract as the put option expires, the stablecoins deposited by the seller will be transferred to the buyer, that is, cash settled in stablecoins example you deposit 10 usdc to sell 1 sui put option duration 7 days current market price 1 sui = 10 usdc strike price 1 sui = 8 usdc contract size 1 sui put option reward you get 1 usdc before vault settlement case 1 when settle price ≧ strike price, you gain if the price of sui stays above 8 usdc when the put expires, the buyer will not execute the put market price at expiry 1 sui ≧ 8 usdc strike price 1 sui = 8 usdc > not executed by the buyer vault settlement you don’t need to transfer usdc to the buyer net pnl in usdc you get 1 usdc the buyer loses 1 usdc case 2 when settle price < strike price, you may lose if the price of sui decreases slightly to 7 usdc when the put expires, the buyer has the right to execute the put at this time, the buyer gets 1 usdc from you the amount is equal to the difference between the market price and the strike price at expiry market price at expiry 1 sui = 7 usdc strike price 1 sui = 8 usdc > executed by the buyer vault settlement the buyer gets ( 8 7 ) = 1 usdc from you net pnl in usdc you are breakeven ( $1 $1 = $0 ) the buyer is breakeven too if the price of sui decreases strongly to 5 usdc when the put expires, the buyer has the right to execute the put at this time, the buyer gets 3 usdc from you the amount is equal to the difference between the market price and the strike price at expiry market price at expiry 1 sui = 5 usdc strike price 1 sui = 8 usdc > executed by the buyer vault settlement the buyer gets ( 8 5 ) = 3 usdc from you net pnl in usdc you lose 2 usdc ( $1 $3 = $2 ) the buyer gets 2 usdc please note that stablecoins could be replaced by native tokens such as $sui as well 👉🏻 start earning deposit 🔎 vault analysis check historial performance 📚 read more depositor guide https //docs typus finance/depositor guide call spread seller a call spread https //docs typus finance/defi options vaults#k3ka vault depositor is a call spread seller the seller deposits the underlying assets (such as $sui) as collateral to sell the call spread option and receives rewards (premium) either in underlying tokens (such as $sui) or stablecoins (such as $usdc) after an auction ends vault depositors are selling a call at a lower strike price, and buying another call at a higher strike price, while vault bidders are buying a call at a lower strike price, and selling another call at a higher strike price if call buyers decide to execute the contract as the call expires, the underlying asset deposited by the seller will be transferred to the buyer, that is, cash settled in tokens example you deposit 1 sui to sell 1 sui call spread option duration 7 days current market price 1 sui = 10 usdc strike price a 1 sui = 13 usdc strike price b 1 sui = 15 usdc contract size 1 sui call spread option reward you get 0 07 sui before vault settlement case 1 when settle price ≦ strike price a, you gain if the price of sui stays below 13 usdc when the call spread expires, the buyer will not execute the call at strike price a and b market price at expiry 1 sui ≦ 13 usdc strike price a 1 sui = 13 usdc > not executed by the buyer strike price b 1 sui = 15 usdc > not executed by you vault settlement you don’t need to transfer sui to the buyer net pnl in sui you get 0 07 sui the buyer loses 0 07 sui case 2 when strike price a < settle price < strike price b, you may lose if the price of sui rises slightly to 14 usdc when the call spread expires, the buyer has the right to execute the call at strike price a at this time, the buyer gets 0 07 sui token from you the amount is equal to the difference between the market price and the strike price at expiry market price at expiry 1 sui = 14 usdc strike price a 1 sui = 13 usdc > executed by the buyer strike price b 1 sui = 15 usdc > not executed by you vault settlement the buyer gets \[ (14 13) / 14 ] = 0 07 sui from you net pnl in sui you are breakeven ( 0 07 sui 0 07 sui = 0 sui ) the buyer is breakeven too case 3 when settle price ≧ strike price b, you lose if the price of sui rises strongly to 20 usdc when the call spread expires, the buyer has the right to execute the call at strike price a, and you has the right to execute the call at strike price b at this time, the buyer gets 0 10 sui token from you the amount is equal to the difference between the market price and the strike price at expiry market price at expiry 1 sui = 20 usdc strike price a 1 sui = 13 usdc > executed by the buyer strike price b 1 sui = 15 usdc > executed by you vault settlement the buyer gets \[ (20 13) / 20 ] \[ (20 15) / 20 ] = 0 35 0 25 = 0 10 sui from you net pnl in sui you lose 0 03 sui ( 0 07 sui 0 10 sui = 0 03 sui ) the buyer gets 0 03 sui 👉🏻 start earning deposit 🔎 vault analysis check historial performance 📚 read more depositor guide https //docs typus finance/depositor guide