Why Options (The Potential)
An option contract gives an investor the right (but not the obligation) to buy or sell an NFT at a specified price called strike price at any time before the contract expires.
Options are an excellent financial derivative to help the next wave of NFTs to gain momentum. By providing the market with the chance to profit from future NFT price movements, we’re unlocking a layer of excitement as well as catering to investors that are looking beyond the simple buy/sell strategy. Creating an options market will also help rejuvenate liquidity in the Ecosystem. Users can get started with as low as 0.1 SOL to participate in the price movement of “blue chip” NFTs that traditionally require a bankroll of 100-200 SOL.
If we draw parallels from the traditional markets, then options are about the same size as the traditional stock market.
Last year, the popular retail investing app Robinhood reported that options trading accounted for 3x more revenue than equities ($165M compared to $52M in Q2 alone). This furthers our thesis that NFT options not only give investors a way to hedge risks and protect their portfolios, but also provide a fun trading alternative with a strong market demand.
Options have significantly grown in popularity