THE “SOLO” CLOUD BEFORE THE “STORMM”: Clutch Markets Is Giving Everyone A Simpler Way To Try Onchain Options Trading Next Week Ahead Of The Full STORMM Platform!

Can you feel it? There’s a STORMM coming to Robinhood Chain.

Clutch Markets is preparing to unleash its upcoming options trading platform, STORMM, complete with different assets, terms, premiums, and more. But before it rolls into the StonkBrokers ecosystem, the firm is starting with a single cloud dubbed SOLO Vaults, which its founder 0xSimpleFarmer says will help get everyone acquainted with all things options!

 

 

“SOLO is STORMM with every dial set to one: a single asset, a single strike, a single term, and a single epoch that settles and opens the next one in the same transaction,” 0xsimpleFarmer wrote. “SOLO Vaults are European style covered call vaults on $STONKBROKER and Stock Tokens, priced in ETH. Ten vaults open on day one. Strikes at 1.5x, 2x, 3x, 4x and 5x the market price the moment an epoch opens (50% to 400% above spot). Each strike comes as a one week option and a one month option.”

Simply put, SOLO Vaults are an easier to understand version of what’s coming with STORMM. Instead of opening the door to a wider range of assets, strike prices, and expirations, SOLO starts users off with a predetermined set of choices, giving them a place to get their feet wet before STORMM opens the floodgates.

 

 

With SOLO, anyone and everyone will be able to participate on either side of a covered call. Writers deposit the underlying asset into a vault and collect a premium for selling the option, while buyers purchase a call that gives them the right, but not the obligation, to acquire the underlying tokens at a predetermined strike price.

Because SOLO uses European style options, that right can only be exercised on the option’s predetermined expiration date, rather than at any point before expiration like an American style option that will be used in STORMM.

 

“SOLO lets users execute leveraged trading on $STONKBROKER and Robinhood Chain Stock Tokens without liquidations,” 0xSimpleFarmer wrote. “Users purchasing and reserving writer liquidity will never be liquidated. Their position can only expire after the time based options period ends, or they can take the in kind payout when the epoch finishes in the money.”

SOLO Vaults are slated to go live on Robinhood Chain sometime next week. This is a developing story and we are working to find out more about all things SOLO. Stay tuned for updates!