Why Mint an Option?

Technical Explanation

Minting options can be a strategy to:

  1. Generate Income: By collecting premiums from the options you mint.

  2. Express a Market View: If you believe an asset's price will not move beyond a certain level, you can mint options to capitalize on this belief.

  3. Commit to Buy/Sell: Especially with put options, you can use minting as a way to set a predetermined price at which you're willing to buy an asset.

Real World Example

Imagine you already wanted to buy more $OPT tokens but were waiting for a price dip. By minting a Put Option at a strike price you're comfortable with, you can earn a premium and potentially buy $OPT at the price you wanted if the option gets exercised. It's a way of committing to your purchase plan while being rewarded for it.

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