Options are uniquely suited for NFTs because they're useful both for actively trading and passively holding.
Selling call options can be a lucrative way of amplifying the returns from NFTs that are being held over the long term.
Unlike other ways of getting capital efficiency with NFTs, such as by borrowing money or using perps, the trader's call option position cannot get liquidated. Compared to buying an NFT, a trader has a fixed downside of the cost of purchasing the option, and a chance of higher percentage losses because call options lose value faster than the underlying NFT as the price goes down.
First time using options?
Already have experience with options or want to dive into the protocol now?
Head to Portfolio if you are interested in earning with your NFTs. Here you'll learn how to easily write call options using Hook Earn. The portfolio tab also helps you manage all of your assets within Hook.
Head to Trade if you are interested in trading NFTs at a fraction of their price. Here, you'll learn how to trade Hook's call options and make wETH-based offers and vBids.
Updated 4 months ago