Writing Call Options
NFT holders can write options on their NFTs by navigating to the 'Create' tab on Hook. Once there, they can select a supported collection in the drop-down menu and then click 'Go'.
Essential data like floor price and 7D floor change % is listed at the top of the collections' mint page.
NFT holders will be prompted to select an NFT in their wallet that they would like to write a call option on. Holders do have the option to initially skip this step. After selecting an NFT in their wallet, Hook will display the Estimated Value as an indicator so holders don't unknowingly select non-floor NFTs.
Choosing an Expiration Date
After holders choose an NFT, they can select an expiration date. The further that the expiration date is from the current date, the higher that the suggested premium will be because the uncertainty about the future price will be greater.
Choosing a Strike Price
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.
Adjusting the Premium
The premium is the amount an option buyer will pay to the NFT holder.
Hook will suggest a premium for the selected expiration date and strike price. The premium is automatically calculated using the Black-Scholes formula. NFT holders have the ability to adjust the premium.
Minting and Listing the Option
After a holder has decided on a premium, they can mint the option by clicking 'Continue to Mint' at the bottom of the page. The underlying NFT will be deposited into Hook as part of the mint process.
After the option is minted, the holder can choose to immediately list it, however, they can choose to skip this step.
The holder will need to sign a gasless message in their wallet to list the option.
An Alternative Way to List and Mint Options
NFT holders can also create call options by going into the 'Profile' tab on Hook, clicking on an NFT, and then following the same steps as above.
Updated about 2 months ago