Observations on Token Derivatives – Part Two

In Part 2, we continue discussing how to use the MOVE Contract by understanding how does the buyer operate. Further, we discuss the practical results of the strategy and before we conclude, we discuss some problems with MOVE and thoughts on potential improvements. Read Part 1 here. 2. How to Use the MOVE Contract? [Continuation] 2.4 How does the Buyer Operate? A) Source of Profit The buyer’s profit mainly comes from the increase of the volatility’s absolute value. Therefore, the premise is to have a low time value. When the delivery price is expected to be the same as the…...