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Zydrine Options – (February 2014)

First post
Author
Block Ukx
Forge Laboratories
#1 - 2013-11-20 20:03:04 UTC  |  Edited by: Block Ukx
The Zydrine options offer has been modified after the input received in this thread.

WHAT IS AN OPTION?
"In finance, an option is a contract which gives the buyer (the owner) the right, but not the obligation, to buy or sell an underlying asset or instrument at a specified strike price on or before a specified date. The seller incurs a corresponding obligation to fulfill the transaction – that is to sell or buy – if the owner elects to "exercise" the option prior to expiration." - [http://en.wikipedia.org/wiki/Option_(finance)]




THE OFFER
In the new offer, I will auction options with a strike price equal the current market price of Zydrine (details below). People will "bet" for buying the Zydrine option in an auction. The starting bet for a 100,000 Zydrine option is 10 ISK. The auction will happen in the Minerals and Manufacturing chat channel around 02:00 Tuesdays eve time. The expiration date on the options will be the end of the next month. For instance, options auction on December 2013 will expire Feb 28, 2014.


CALL OPTION - Zydrine February 2014

SIZE
100,000 units

EXPIRATION DATE
Feb 28, 2014

STRIKE PRICE
The strike price is the average price of the top 5,000,000 units buy and sell Jita offers at the time of the . For example, the current Zydrine price at the moment I typed this post is 709.50 ISK.

SETTLEMENT TERMS
Delivery: Jita
Cash Settlement: I sell Zydrine for you to buy orders in Jita and send you the profits after taxes.



AUCTION RULES
I will use a modified version Molic Blackbird's auction rules:

1. Auction ends 5 minutes after the last bid.
2. All bids take place in Minerals and Manufacturing channel.
3. All bids must be in ISK.
4. Tie bids go to who ever is first on my screen.
5. Rules are always subject to change at my discretion
6. Bid increments is 10 ISK
7. Bid withdrawls can be done, but all your bids become invalid for the rest of the day.







Zydrine Insurance - CANCELLED
Participating parties will be refunded while maintaining the option.

Zydrine Insurance – (Buy Option) - CANCELLED

The price of Zydrine has increased steadily since the launch of Rubicon. In the last 24 hours alone, the Zydrine price has gone up ~ 20 %. There is no way of telling where Zydrine price will end up but at this rate you can expect Zydrine price to reach 2,000 – 2,500 by the end on next week. However, manufacturers, traders, and speculators can protect themselves against outrageous Zydrine prices in the future by purchasing Zydrine Insurance.

The Zydrine Insurance policy is basically an option contract, where the policy holder has the option and it is not obligated to purchase Zydrine at the specified strike price any time on or before the policy expiration date. Each single contract consists of 100,000 units of Zydrine available for delivery in Jita Hub with a January 31, 2014 expiration date. There are three different options to choose from that are priced accordingly.

To reserve your policy simply post here the number of contracts and the contract ticker you would like to reserve, and send the policy payment to Block Ukx. All purchased policies will be listed in this thread.

To redeem your policy simply evemail me with the number of contracts you would like to redeem. If you prefer a cash settlement, I will sell the Zydrine for you at the best available price, and deliver your profits in ISK.

Do not hesitate to ask questions. Suggestions are welcome.

PRICING - CANCELLED

Contract Ticker : ZD1500
Zydrine Price : 1,500 ISK per unit
Policy Price : 10,000,000 ISK

Contract Ticker : ZD2000
Zydrine Price : 2,000 ISK per unit
Policy Price : 5,000,000 ISK

Contract Ticker : ZD2500
Zydrine Price : 2,500 ISK per unit
Policy Price : 2,000,000 ISK

Total Policies Available : 900 - CANCELLED
IMPORTANT: Available contracts and prices subject to change depending on market conditions.
Block Ukx
Forge Laboratories
#2 - 2013-11-20 20:03:29 UTC  |  Edited by: Block Ukx
ZDFEB2014
Molic Blackbird - 10 contracts @ 710.50 strike price
Yutte Harlamek - 10 contracts @ 693 strike price





ZD2500
Poison - 50 [Refunded 12/9]
Ryomanni - 50 [Refunded 12/9]
Promiscuous Female
GBS Logistics and Fives Support
Goonswarm Federation
#3 - 2013-11-20 22:19:08 UTC
put me down for negative squintillion of these please
Debra Tao
Perkone
Caldari State
#4 - 2013-11-20 22:34:13 UTC
So you are like Goldman Sachs right ? You tell your constumers that you can sell them an insurance against what will probably happen. You are so nice.
mynnna
Caldari Provisions
Caldari State
#5 - 2013-11-20 22:45:56 UTC
Block Ukx wrote:
The price of Zydrine has increased steadily since the launch of Rubicon. In the last 24 hours alone, the Zydrine price has gone up ~ 20 %. There is no way of telling where Zydrine price will end up but at this rate you can expect Zydrine price to reach 2,000 – 2,500 by the end on next week.


http://i.imgur.com/s9Cnc2V.jpg
http://i.imgur.com/AmZbFVX.png
http://i.imgur.com/0zi57sA.jpg

Member of the Goonswarm Economic Warfare Cabal

Elizabeth Norn
Nornir Research
Nornir Empire
#6 - 2013-11-20 22:51:42 UTC
Or we could rush out and buy all the Zydrine at 100 isk more per unit than yesterday...wait a minute Roll.
Block Ukx
Forge Laboratories
#7 - 2013-11-20 23:46:14 UTC
Elizabeth Norn wrote:
Or we could rush out and buy all the Zydrine at 100 isk more per unit than yesterday...wait a minute Roll.



Yes, you could buy the Zydrine yourself. However, this insurance policy (buy option) lets you lever your ISK. For Instance, you could secure 250M worth of Zydrine with only 2.5M ISK; that's 1:100 leverage.


Adunh Slavy
#8 - 2013-11-21 00:05:35 UTC
Save your Zyd and make this offer on the short side? Likely more profitable.

Necessity is the plea for every infringement of human freedom. It is the argument of tyrants; it is the creed of slaves.  - William Pitt

SJ Astralana
Syncore
#9 - 2013-11-21 00:13:50 UTC
Happens every patch. I've moved my stock well above the pack while the suckers spin. As of yesterday Tempests and Drakes were selling at a loss as measured against a 30-day rolling average, which means they must be selling well below spot prices. Nobody seems to have joined me up here so as sure as a hard boiled egg in a microwave explodes into dust they're going to crap out. By far my favourite time as a producer.

Hyperdrive your production business: Eve Production Manager

Molic Blackbird
Orion Faction Industries
Orion Consortium
#10 - 2013-11-21 00:33:21 UTC
I thought you were done offering these types of investments? At least that's what you've said after previous attempts never worked out.Smile
Block Ukx
Forge Laboratories
#11 - 2013-11-21 01:47:48 UTC
Adunh Slavy wrote:
Save your Zyd and make this offer on the short side? Likely more profitable.



That's a good idea. Will try that next after I finish this offer.


Block Ukx
Forge Laboratories
#12 - 2013-11-21 01:50:40 UTC
Molic Blackbird wrote:
I thought you were done offering these types of investments? At least that's what you've said after previous attempts never worked out.Smile



Yes I did. They don't seem to work for lack of interest. Let's see if it works this time around.

Block Ukx
Forge Laboratories
#13 - 2013-11-21 12:20:39 UTC


Sell price for Zydrine peaked at 818 ISK, now back to 798 ISK. Purchase price holding at 698 and expected to climb this weekend. The ZD1500 policy will be withdrawn if Zydrine sell price clears 1,200 ISK.


Adunh Slavy
#14 - 2013-11-21 14:59:26 UTC
Block Ukx wrote:
That's a good idea. Will try that next after I finish this offer.



Let me know, I've given some thought on how to structure these deals, back during the previous mineral slump.

Necessity is the plea for every infringement of human freedom. It is the argument of tyrants; it is the creed of slaves.  - William Pitt

Grozen
Deep Core Mining Inc.
Caldari State
#15 - 2013-11-21 15:58:54 UTC
You had quite a bit of zydrine on the market yourself.Win win eh?
On the side the new modules does use tremendous amounts of zydrine so the price of zydrine will jump with 30% of what it used to be and when the new medium and large syphon units are up even more i guess.Looks like zydrine will become the new megacyte.

knowledge is power.

Lucas Kell
Solitude Trading
#16 - 2013-11-21 16:42:35 UTC
So just to be clear.
You want people to pay you isk for the chance to buy Zydrine at a price way above market price, which is highly unlikely to go any higher than 900 (if it even reaches that, which is doubtful).
Is that about right?

Why exactly would someone buy an option to buy Zydrine at 2500/unit (a ludicrous price) when they could buy it right now at 786/unit.

Essentially you would be standing to make 2-10b from the contracts alone, so I can see why you would want to do it, but I'm confused as to how people like your first investors think they stand to gain any isk.

The Indecisive Noob - EVE fan blog.

Wholesale Trading - The new bulk trading mailing list.

Elizabeth Norn
Nornir Research
Nornir Empire
#17 - 2013-11-21 16:47:00 UTC
Lucas Kell wrote:

Why exactly would someone buy an option to buy Zydrine at 2500/unit (a ludicrous price) when they could buy it right now at 786/unit.


And if it's going to hit 2000-2500 in a week why shouldn't we just buy Block's Zydrine directly from the market for 30% of next week's price?

Block Ukx wrote:
ZD2500

Poison - 50
Ryomanni - 50


https://gate.eveonline.com/Profile/Poison


I'm sold, if your alt is buying Zydrine at that price then it must be a good deal.
Block Ukx
Forge Laboratories
#18 - 2013-11-21 17:52:29 UTC
Lucas Kell wrote:
Why exactly would someone buy an option to buy Zydrine at 2500/unit (a ludicrous price) when they could buy it right now at 786/unit.




I agree, it is probably doubtful Zydrine will reach 2,500 ISK pu by Jan 31, 2014, but I think it could possibly reach 1,500 ISK pu. However, I agree with Grozen’s observation that the new modules will push the price of Zydrine up. An example of a similar situation is what happened to the price of Nocxium. There was a time you could purchase Nocxium for 60 ISK pu. When the price started to climb up I offered to sell 100M units of Nocxium initially at 295 ISK pu (See http://oldforums.eveonline.com/?a=topic&threadID=1384335 ). I increased the price to 350 as the Nocxium price continued to increase. I end up selling that batch it in Jita.


This insurance offer is really an option for people that might want to protect themselves against a sudden spike in Zydrine prices. One option is what you mention – buy it right now at market price. Another option is to lever your money (up to 1:125) by purchasing this option. For instance, with 2M ISK you could purchase the grand total of 2,604 units of Zydrine at 768. Suddenly, the price peaks at 3,000 ISK pu (best case scenario), you then sell it and profit 2,604 * (3,000-768) = 5.8 M ISK. In contrast, you could purchase one option contract and opt to settle for ISK. In this case your profit would be 100,000 * (3,000 – 2,500) = 50 M ISK. As you can see, using leverage can greatly amplify your profits. Because this is an option, the most you stand to lose in this scenario is 2M ISK.




PS Poison and Ryomanni are not my alts.


mynnna
Caldari Provisions
Caldari State
#19 - 2013-11-21 18:37:29 UTC  |  Edited by: mynnna
Grozen wrote:
You had quite a bit of zydrine on the market yourself.Win win eh?
On the side the new modules does use tremendous amounts of zydrine so the price of zydrine will jump with 30% of what it used to be and when the new medium and large syphon units are up even more i guess.Looks like zydrine will become the new megacyte.


None of the new structures use more than a couple of cruisers worth of zydrine and Siphons use megacyte as well. Note that cruisers account for perhaps 3-5% of total mineral demand. If Zyd jumps by as much as you say it will at all, it'll be as much or probably far more due to many classes of tiericided ships finally being profitable to build again, and megacyte will rise along with it for the same reason.



But don't let me get in the way of your attempts to overhype the market so you can sell your product. P

Member of the Goonswarm Economic Warfare Cabal

Grozen
Deep Core Mining Inc.
Caldari State
#20 - 2013-11-21 18:54:35 UTC
Zydrine op, better nerf irelia.Maybe I'm also blocks alt and we need to hype this moar!Lol
82m units purchased yeasterday with average 42-56m on normal day.January I don't think so but 1.5k by summer next year is more realistic with this speed.

Mynna need new style for her market orders 444 and 666 getting old now its like oh its you hai.P

knowledge is power.

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