DeCalls Whitepaper

Which Option is Right For Me?

Given the diversity of application for options, there is a strategy suitable for each investor with differing levels of risk tolerance.
Options can be used to generate income on current holdings, to protect yourself from catastrophic loss, or (for those with higher risk appetite) to speculate on price direction to achieve outsized gains.
With DeCalls NFT options, there are four different actions you can take:
  1. 1.
    Buy a Call (Long Call)
  2. 2.
    Sell a Call (Short Call)
  3. 3.
    Buy a Put (Long Put)
  4. 4.
    Sell a Put (Short Put)
We’ll explain the rationale for each of these actions and why a trader may choose to use one or a combination of these actions to form a strategy that fits their portfolio, risk tolerance, and outlook.
Keep in mind that whenever you are buying an option (whether Moon or Doom), you are paying a small fee (known as the “premium”) to the seller of that option. Option sellers can generate a steady income from premiums by providing the appropriate collateral for their option contract: NFTs for selling calls, and SOL for selling puts. Note: DeCalls does not support “naked” calls or puts, in which the option seller (also known as the “option writer”) writes an option without collateral. All sold options must be covered calls/puts.
In the strategies section, we review various option strategies and visualize potential profit & loss scenarios on NFT floor price movements. The X-axis in the visuals represents the NFT price, and the Y-axis represents where your option would be in profit or loss.