QDX Spot Index0000.00 USD2778.50 USD3361.21 USD9311.01 USD1966.98 USD
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QDX Settlement Index0000.00 USD8008.23 USD1043.00 USD9283.15 USD6261.70 USD
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# Option Quotations Guide

This guide is accompanied by an interactive spreadsheet (in order to modify the values, copy it with File -> Make a copy).

On Quedex, price of an option can be introduced in a threefold manner:

• Price in BTC,
• Price in % Implied Volatility (IV),
• Price in % notional.

Price in BTC equals `Option Premium` (just as in the examples above) per \$1 notional. It represents the amount of BTC that will be deduced from your `Free Balance` when you enter long position in it.

Alternatively, you could input the price as % IV, which is perhaps most straightforward.

Lastly, it is possible to enter the price as a % of Notional, which represents how much will you pay for the option relative to the \$1 notional amount valued at the strike of the given option.

``% Notional = Option Price / Strike Price. ``

% Notional of Quedex options is comparable with the options that have 1 Bitcoin notional size.

Moreover, Quedex offer two distinct ways of introducing the quantity of options to be purchased, namely:

• Quantity,
• BTC hedged,

where Quantity means simply the number of option contracts that are to be purchased and

``BTC hedged = 1 / Strike Price * Quantity, ``

which gives the information on how much BTC is hedged by buying the contract.

### Example

Assume investor A (Alice) wants to protect herself against a fall of BTCUSD rate below \$16500 level in a 1M time, where current BTCUSD rate equals \$17000. She therefore wants to buy call options on strike \$16500. Assume

• Bid IV = 135%,
``Quantity = 0.5 * 16500 = 7750 ``
of such contracts. Fortunately Quedex does not require its users to perform all the computations on their own - A could simply enter the `% IV` and `BTC hedged` she wishes to have and the webapp would automatically compute other quantities in the web app, in the Order Entry panel.