🐋
Moby
  • Let’s Get Started
    • 🐋 About Moby
    • ⚡ Our Vision
    • 🤓 Your Guidebook
      • Get Setup
        • Connect Wallet
        • Trade Options
        • 0DTE Options
        • Provide Liquidity
      • Fees & Instruments
        • Fee Generation
        • Fee Distribution
        • Instruments
      • Testnet
  • How it’s Built
    • 🚀 Synchronized Liquidity Engine (SLE)
    • 🧮 Options Pricing Model
      • Mark Price
        • Futures Index
        • Implied Volatility
      • Risk Premium
        • Deriving Greeks
        • Risk Premium Calculation
        • Risk Managing Mechanism
    • 🤖 Architecture
      • Liquidity Provision Mechanism
      • Options Listing Standard
      • How to Open / Close / Settle Position
      • Synchronized Liquidity Engine (SLE)
      • Options Position Tokens
      • Tools to Maximize Capital Efficiency
    • ⚙️ Key Features
      • High Leverage & Limited Risk with No Liquidation
      • Narrow Spread with Dynamic Risk Premium
      • Guaranteed Settlement
      • Capital Efficiency Improvements with Combo Options
      • Even Higher Capital Efficiency with Clearing House
      • Abundant Liquidity for All Options
      • Composable Options for Structured Products
      • High Profitability for LPs
      • Real-Time Automatically Hedged OLP
      • Upcoming Features
    • ⛓ DeFi Options Vault
      • 🐻 Berachain DeFi Options Vault
        • 🔒 Architecture
        • 📈 Options Strategy
  • How it’s Driven
    • 🛡️ Building the Safest DeFi Protocol
      • Safety Features
      • Smart Contract Audit & Real-Time Security Monitoring
    • 🏛 Backed by Decentralized Governance
      • Governance
    • 🌐 Led by the Best Partners & Community
      • Arbitrum X Moby
      • Engagement Programs
  • Need More Info?
    • 📚 Resource Library
      • Developer Resources & Educational Contents
      • Terms & Conditions
      • Glossary
      • FAQ
  • Developers
    • Moby Traders API
      • REST API
        • General
        • Account
        • Market
    • Trade Scripts
      • Prerequisites
      • Open Positions
      • Close Positions
    • Interfaces & ABI
      • PositionManager.sol
      • SettleManager.sol
      • RewardRouterV2.sol
      • OptionsMarket.sol
    • Appendix 1: Parameters for Open/Close Options
    • Appendix 2: the Diff between optionId and optionTokenId
    • Appendix 3: Sample Moby Contract Module for Developers
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On this page
  • What are Combo Options?
  • How can Combo Options Improve Capital Efficiency?
  • Trade Combo Options on Moby
  1. How it’s Built
  2. ⚙️ Key Features

Capital Efficiency Improvements with Combo Options

What are Combo Options?

  • Combo Options employ strategies to execute several options trades simultaneously, designed to reduce capital requirements and operational costs as much as 99% for both traders and liquidity providers

  • This approach strategically merges different options positions to not only optimize the risk-reward balance but also substantially enhance traders’ leverage

How can Combo Options Improve Capital Efficiency?

  • For traders to buy options, Combo Options can render significantly higher leverage, effectively enabling more dynamic trading strategies with reduced risk

  • For traders to sell options, Combo Options can take a sell position with small collateral

  • For LPs, their liquidity pools would be able to supply increased liquidity with less capital due to the lower collateral and reduced risk associated with Combo Options

  • In essence, Combo Options would enhance capital efficiency for both traders and LPs, supporting the development of more versatile and effective trading strategies with diminished risk exposure

  • Combo Options have a smaller impact on the OLP's Greeks compared to vanilla options, resulting in more advantageous spreads for traders — this is attributed to Moby's Dynamic Risk Premium model, which calculates the Risk Premium (Spread) according to the influence of an option position on the OLP's Greeks

Trade Combo Options on Moby

  • Currently, Moby offers "Call Spread" and "Put Spread" Combo Options, which allow users to trade call or put options that exhibit identical expiration but with different strike prices

  • Moby plans to offer a wider variety of Combo Options to present diversified trading strategies for traders and improve capital efficiency for LPs

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Last updated 1 year ago