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To open a naked short position on either calls (spear tokens) or puts (shield tokens), liquidity providers must deposit collaterals to the option pool. Later, the deposited collaterals will be utilized and reserved for settlement when option tokens are sold to traders. Liquidity positions can sell both calls and puts while liquidity is active. As premiums from selling a call can settle a put, and vice versa, an LP's seller obligation is defined as net shorts in either calls or puts:
- 1.Specify your desired option terms ⚙️- underlying, expiration, collateral.
- 2.Choose the strike price 🎯 that you prefer.
- 4.Select the price ranges at which you would like to short options.
- 5.Enter the amount of collateral that you wish to commit to the naked short position.
- 6.Complete the transaction.
Once you have created a short position, you will see it in your "Dashboard-Short Positions" section. You can also view the details of your position, including the number of options you have shorted, by clicking on the "view" button.
The following key details of your short position will be available for you:
- Seed Deposit: The initial amount of collaterals you seeded to the position.
- Premium Proceeds: The amount of proceeds you received for selling the options.
- Fees: Total amount of transaction fees you have earned.
- Sales Volume: The number of calls and puts you have sold.