# Option strategy - Straddle on Lyra Optimism

**Published by:** [nanobro](https://paragraph.com/@nanobro/)
**Published on:** 2023-05-30
**URL:** https://paragraph.com/@nanobro/option-strategy-straddle-on-lyra-optimism

## Content

Option and Straddle strategy explained ✅ Let's see @lyrafinance on @optimismFND ✅ Good strategy when u expect big shift$OP to be release 9% of total supply in 14hrsStraddle is a strategy using options in trading - betting the same strike price for both Call (up) and Put (down). ✅ If the asset rises and falls, we profit. ❌ But if the asset price remains the same until the option expires, we lose our initial investment.Let's continue with Lyra and Option. Lyra is an option market for hedging or profiting, similar to futures - but we won't get liquidated. 🚨We lose when the option we bought expires or our prediction goes wrong ps. @lyrafinance also suppport @arbitrum $arb tooFor beginners, it's enough to just be a buyer because profits are unlimited but losses are limited. If we predict a rise, buy Call. If we predict a fall, buy Put Here's an example, if we predict $OP to fall, we can buy a PUT $OP with a strike price of $1.5 expiring on June 2nd, 3pm at a price of 0.0609 (as seen in the yellow circle)Continuing, the green circle in Lyra summarizes for us and we can check with the mouse to see our profit chances. Here I bought 100 contracts for $6.18. If the $OP price drops to $1.44, it breaks even. If the price drops to $1, we get back $43.8 What I've been talking about is from the perspective of an option buyer. If you advance, you can be a seller to earn fees or what is called a premium. If you want to study in more detail, there is a model to evaluate the appropriate option price called the Black Scholes modelFrom what I've observed, crypto has high volatility. There are many opportunities to profit from straddles, but the most significant risk is contract expiration (most contracts are also short). If you want to trade, go for Lyra. https://app.lyra.finance/#/trade/optimism/eth-usdc **Not financial advice, of courseThat’s it thank you for following along. If you like the content, feel free to follow, subscribe, and even mint NFTs to support my work with a nano-coffee. Thank you very much!

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