Carmine Academy

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.

Beginner information

Mastering Options Trading with Carmine Options AMM: A Guide for Retail Users

Article 1: Mastering Options Trading with Carmine Options AMM: Discover the Basics and Elevate Your Investment Game with Carmine Options AMM!

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


Impermanent loss

Series of articles describing how to hedge and insure 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: Insuring against Impermanent Loss

Bonus Article: How to price Insurance aganst Impermanent Loss

Advanced information

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