You can only buy options, not sell them. Are you guys taking the other side of the trade? I basically jump straight to assuming > any risk model ever used for options trading won't work, because the market could move and you won't be able to afford to payout.

There are also lots of option traders, who maintain structurally short theta positions (Eg. buy-write strategies), and this product doesn't even acknowledge that they exist. > For the record, the only public-facing option-strategy sold in any crypto ETF, is a buy- > write. So, that gives you some indication of how popular that is compared to other > > strategies.

they expire 1 day after opening the position This is very odd to me. Open interest usually gets rolled, unless the trader is looking to actually execute trades via expiration of the contract. I can't think of a >type of trader who wants a single-day option. But, I could be wrong on this one. >Maybe you know of a case that exists somewhere. (Maybe mining/electricity/hash- rate-contracts somehow? I dunno.)

...only 4 strikes... (paraphrasing) This rules out doing almost anything interesting in terms of managing other risk >(gamma, theta, vega). You can't put on a ratio-trade of any kind.

It is computed with Black Scholes formula. I don't think Black Scholes will work very well on these special instruments. You >may have some amount of structural arbitrage baked into your price, if you're >offering options using BS. Either your customers will be ripped off, or you will be >giving away free money

And, just some feedback on semantics... Decide whether to buy a call (go long) or a put (go short) This is not correct use of that language. If you buy anything, you're going long that >instrument. If you short anything, you're borrowing (or writing) that instrument, then >selling it. You can go long a call or go long a put. The same way you can write (ie >short) a call or a put. To fix the language, it would be: Decide whether you want to >buy long or short exposure (ie delta) to the price of BTC. If you're bullish, buy a call. >If you're bearish, buy a put. It's really confusing, because you can't sell (or write) >contracts on your platform, so it's impossible to be short any of these instruments. >You don't even need to use the word "short" on any of the readme anywhere IMO -- >given the no-selling.

I know its pedantic, and I might seem like a jerk, but the feedback is aimed to help >you all step up your game. Imagine I sat here and didn't share the above? That >would be the jerk move, imho. Good luck LN Markets! The stuff above is fixable. >Go go go!