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mircea_popescu: well yes my dear BTC-Mining, in this game where you're the only one that has any btc and any usd you can ofcourse do whatever you like lol
mircea_popescu: this all notwithstanding that i wouldn't allow the insanity in the first place, just for the sake of argument.
mircea_popescu: considering you started with 2mn btc worth ~24mn usd each and now have ~1.66mn usd and another 1.66mn in btc
mircea_popescu: so you cash 4.15mn btc on the options, lose the escrow. you now have 4.15mn btc worth 4 each and 1.66mn usd
mircea_popescu: now, of your original 2mn btc you have 1,666mn usd and 1.666 mn btc
mircea_popescu: say 333k btc sold at ~5 or so on avg to crash it all to 4.
mircea_popescu: i mean... it's the nature of options, they lend themselves to daydreaming.
mircea_popescu: but i mean, if you're daydreaming it'd be cheaper to buy a buncha calls and push the price up lol
mircea_popescu: you crash the price with your other million. since we now have superpowers, i buy your other million.
mircea_popescu: so, you split a bitcoin, get some calls and some puts. nwo what ?
mircea_popescu: sex has also flaws. it is pleasurable and makes time zip by!
mircea_popescu: god i love the opinions of the incompetent on matters they don't understand
mircea_popescu: "Even if they had every regulation in place, it still has other flaws, like being deflationary and non-reversible. The only time bitcoins will be "stable" is when the number of users drops very low"
mircea_popescu: except mpex works in bitcoin. why should i bother the customer with filthy fiat ?
mircea_popescu: i need 119900 new btc. as far as you're concerned, you get 100 btc back
mircea_popescu: you'd lose nothing on the calls and .2 on the puts, coming out to 180 btc.
mircea_popescu: <mircea_popescu> but for simplicity's sake all those things happen behind the scenes.
mircea_popescu: but for simplicity's sake all those things happen behind the scenes.
mircea_popescu: well, it'd work cause at the time you posted the collateral it was in fact worth enough to cover in dollahs.
mircea_popescu: you'd just not get anything out of your colateral in practice.
mircea_popescu: it rounds issuance down, so you could end up with 0 puts if the strike is high
mircea_popescu: split works automatically, you declare the capital and the option
mircea_popescu: that's why they are called options. they convey the right but not the obligation.
mircea_popescu: i'm kinda proud of the fact that mpex allows not only option buying, but also option writing, without any unbound risk.
mircea_popescu: obviously if it goes up you can make a loss. but you can adjust the % you sell to suit your expectations
mircea_popescu: you make 5k atm calls/puts, you sell the calls, keep the puts. if price goes down in fact you make a decent profit
mircea_popescu: but anyway, consider the case you have 10k btc and want to ensure that they don't go under 100k usd.
mircea_popescu: mpex doing it's part to promote financial responsibility.
mircea_popescu: well, yes, it practically boils down to, a little overescrow.
mircea_popescu: and if you sell the out of the money side and it stays out of the money you make that sale profit
mircea_popescu: you put up 20 btc you get 10 call contracts and x put contracts of your chosing
mircea_popescu: you put up 20.4 btc get 20 call contracts, of your choosing
mircea_popescu: and at the end of the month he gets something, 0.0x or more possibly if the price goes down
mircea_popescu: there's for instance a guy keeps making huge bulks of c10t s
mircea_popescu: rdponticelli you'll have to get all the old folks who don't even grok the internet accept that the sun sets at 7am ?
mircea_popescu: novusordo some people came in and said they were paid. it seemed like it's all paid but now there's also people who haven't, and the ones paid are in the <10btc range
mircea_popescu: BTC-Mining is this turning into a pirate, 23/690 accts paid sorta ordeal ?