Coinut Binary Liquidity & Implied Vol

One aspect of the Coinut trading platform that is starting to get on my nerves this morning is the inability to modify an open order.  It seems the system does not provide the manual ability to modify an open order.  To change an existing order, the user must cancel the order and re-enter a new one instead. This make it a bit cumbersome to manually work an order book.

It would also make the prices more intuitive if you could choose to view the prices with the first two decimal places removed.  Sometimes it takes second to see that the price of an option is 0.00010 compared to 0.00100.  The difference with the binary implied probability is 1% compared to 10%, so its a big difference.

The market for binary options on Coinut seems to be more liquid than the vanilla options.  So in effort to get my first trade, I placed some aggressive 1 lot orders in a few weekly binaries this morning. Hopefully someone takes me out.

This morning I also took a quick look at implied probability at some of the options I’m making markets in. Considering the May 21st (1 week) binary 464 calls with the underlying at 455.81.  The current market is 0.002097 bid / 0.003000 offer. I am the best offer. The bid price represents implied volatility of 17.09% and the offer price represents implied volatility of 26.92%.  The VIX is currently at 15.04%. So this is very interesting for bitcoin traders.

 

RiskingTime

Leave a Reply

Your email address will not be published. Required fields are marked *