Open a position
The following describes the step-by-step instructions to open a position at Charm. Opening position to buy ETH calls are used as an example, but the steps will be the same for put options*, to sell options*, or for a different underlying* (eg WBTC).
*See 'Notes' page for some special considerations in relation to put options, selling options, or options with different underlying.
Step 2. Click 'Connect Wallet' at Charm :
Your wallet address should appear in the top right corner:
Step 3. If you want to buy ETH Call option of Size 0.01, with Expiration Date of 25th June 2021, and Strike Price of 480; enter the following details into Charm:
Step 4. Read the description in the yellow box, to ensure you understand your payoffs and the risks of this options contract.
Step 5. Click 'Buy ETH call' if you wish to proceed. The following will appear in Metamask:
The total cost cost here is 0.00738, rather than 0.007028 because a 5% slippage protection is included in the price of your option, if this price changes after your purchase, but before the trade is executed on-chain. The 5% will be refunded to you if it is not required.
The Metamask box indicates the total cost, including estimated gas fees, is 0.043008. This INCLUDES the amount that will be refunded to you per the above.
Step 6. Click 'Confirm' to proceed with the purchase.
Step 7. Charm and the Metamask box will show the transaction is 'Pending':
Step 8. When your transaction have been confirmed on the Blockchain, you will received the following confirmation from Metamask:
Step 9. Click on the above to view and check your transaction on Etherscan:
From the above, you can check the following details of your transaction:
The refund is the amount returned to you per step 5.
The option you purchased and size, should match the details in step 3.
The total cost before refund should match the amount in step 5.
The final gas fee should be lower than the Metamask estimate in step 5.
Congratulations! You have now bought an option that lives 24/7 on the Blockchain.
It is yours to keep and you can do whatever you like with it - move it to other wallets, put in on other Defi apps, or use it to build your own cool applications.
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