Writing (minting) an option using Hook

Writing or minting a call option means depositing an NFT into the protocol while specifying a particular strike price and expiration. This process mints an option NFT into your wallet, which you can sell to another person to earn a premium. When you do this, you have the potential to earn money; however, the NFT you deposit could be sold if someone bids more than the strike price you specify on the day the option expires.

Hook hosts a client that makes it easier for you to create options.

To get started, visit the create tab at the top of the page

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First, select the collection of the asset you'd like to deposit to write this option.

This asset is called the underlying asset. Hook's frontend works only with specific collections; however, our team is actively adding collections. When you select a collection, you can view the current supported strike prices and expirations for that collection.

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Press the "Pick an NFT" button to select the underlying NFT.

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Select your desired expiration date

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Choosing the expiration is an important choice

The settlement auction for the option will end on this day, meaning that if someone bids above the strike price on this day, they will be able to purchase the underlying NFT from you for the strike price

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Select your desired strike price

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The strike price has a major impact on option values

The strike price is the most that you'll get paid if someone bids above the strike price in the settlement auction that ends on the expiration date. Make sure you're willing to sell the underlying NFT for this price. Generally, the lower the strike price, the more valuable the option, and the more likely the NFT will be sold, and the higher the strike price the more likely the NFT will not be sold.

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Adjust the premium

Hook suggests a premium based on the current activity in the market. However, this number is merely a suggestion, and you can specify any premium you'd like by modifying this box. The premium is the amount you're listing the option for on our market. Regardless of the premium, you'll be able to receive offers on the options you hold.

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Review the option and mint

Read the sentence to confirm the parameters are correct, then press Create to be prompted to send the transaction in your wallet.

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Wait for the option to create

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List option on marketplace

List your option on the market. You'll have to sign a message in your wallet, but this will not cost any gas.