Lyra Documentation
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Short Put
In Lyra's system, to sell a put you must collateralize it with cash equivalent of the strike. The payoff structure of a short position is as follows:
Why trade it?
If you think a stock is going up, staying where it is, or only going down a small amount.
Setup:
Sell a put short, post the strike price as collateral (in cash)
Example:
Selling the ETH 2000 put expiring in 15 days for $150.
Cost:
The collateral posted minus the premium received from the put ($2000 - $150 = $1850).
Max Profit:
The premium received for the put ($150).
Max Loss:
The difference between the strike price and zero, minus the premium received for the put ($2000 - $0 - $150 = $1850).
Breakeven at expiration:
The strike minus the premium received ($2000 - $150 = $1850).
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Option Prices Explained
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