NFT holders who have previously traded call options or want more flexibility can use the Advanced view.
NFT holders can first select an expiration date. The further that the expiration date is from the current date, the higher the suggested premium will be because the uncertainty about the future price will be greater. Hook lists the days from today under the Expiration Date.
Click on a date to proceed.
After choosing an expiration date, NFT holders are able to choose a strike price. The closer the strike price is to the current floor price, the higher the suggested premium will be. Hook lists the strike price's percentage away from the floor.
Click on a strike price to proceed.
The premium is the amount an option buyer will pay to the NFT holder.
The protocol will automatically calculate a premium for the selected expiration date and strike price using the Black-Scholes formula. NFT holders can adjust the premium by clicking the pencil next to the ETH amount and inputting a new ETH amount. Click the check or press enter to continue.
A grey lightning bolt next to a strike price/expiration date means there is an active offer available for that option. You can easily accept by clicking 'Continue' or can adjust the premium to a higher amount and list your option by following the steps above.
After a holder has decided on a premium, they can mint the option by clicking 'Deposit with Hook'. The holder will have to complete three steps:
- Sign Entitlement
This is a gasless transaction that has the holder recognize they will be listing the NFT at a later date for sale.
- Mint Option
The underlying NFT is deposited into Hook and an option (ERC-721) is minted back to the holder.
- List Option
The underlying NFT is listed for sale on Hook's secondary marketplace. Options traders can make offers or purchase the option outright.
If the underlying NFT had an option previously written on it and has not been settled yet, there will be an additional step to settle the previous option before proceeding.
Updated 8 months ago