Ribbon Finance: automated options selling strategies

Many financial derivatives provide a pathway to lucrative potential payout, but they also carry enormous risks. A considerable proportion of retail investors are ill-equipped in trading derivatives due to the sophistication of such financial instruments. For instance, decentralized options remain nascent in the crypto space as the non-linearity of options payoffs does not resemble existing crypto products. Retail traders do not know how to price them and instead opt for more easy-to-understand perpetual futures.

Still, options offer a lot of advantages if used appropriately. They can be a cost-efficient means to construct leveraged positions, and they could also be less risky with a limited downside as they require less financial commitment.