Carmine Academy
Last updated
Last updated
This documentation aims to offer in-depth insight into the diverse options () present within the Carmine Options AMM ecosystem. Our objective is to empower you to comprehend, assess, and actively engage with this advanced, decentralized finance platform. Irrespective of your experience level—whether you're a seasoned trader or a novice in decentralized finance—this guide provides an exhaustive overview of option trading basics, strategies, risk management, and Carmine Options AMM's distinctive features. Upon completing this documentation, you'll possess the requisite knowledge to confidently explore and maximize the benefits of Carmine Options AMM.
Articles and resources are under construction, so not everything is available yet.
You will learn:
Overview of options (call and put options)
Key terminology (strike price, expiration date, underlying asset)
The benefits of options trading for retail investors
Article 2: Understanding Options Pricing (under construction)
Intrinsic and extrinsic value
Factors affecting options pricing (time decay, volatility, interest rates)
The Black-Scholes model and its relevance to retail traders
Will be presented from a perspective of how it influences the normal person
Article 3: How to hedge
Common tips on how to hedge your investments
Article 4: Building Your Options Trading Strategy
Common options trading strategies for retail traders (covered calls, cash-secured puts, vertical spreads, iron condors)
Risk management and position sizing
Tips for creating a personalized trading plan
Article 5: Navigating the Carmine Options AMM Platform + Executing Your First Options Trade on Carmine Options AMM
A step-by-step guide to opening an account and openning a trade
Understanding the tools available on the platform
Tips for optimizing your trading experience
A practical walkthrough for placing your first options order
Managing your trade and adjusting your strategy Closing, exercising, or rolling your options
Article 6: Options Trading Mistakes to Avoid
Common pitfalls and misconceptions in options trading
The importance of managing emotions and maintaining discipline
Tips for overcoming trading challenges and learning from mistakes
Series of articles describing how to hedge and protect against Impermanent Loss
Article 1: Hedging Impermanent Loss (part 1)
Article 2: Hedging Impermanent Loss (part 2) - no simplifications of IL, simple hedge
Article 3: Hedging Impermanent Loss (part 3) - no simplifications
Article 4: Hedging against Impermanent Loss with a simulation of trading and fees collected
Article 5: Protecting against Impermanent Loss
Bonus Article: How to price protect against Impermanent Loss