How Infinity Call Option Works?
Updated: Dec 27, 2021
When you buy an Infinity Call Option, you pay a Premium using $EDGE. The Premium you paid gives you the right but not the obligation to buy Infinity($INFI) at a specified price within a specific time period. The call option buyer profits when Infinity($INFI) increases in price or surpasses the breakeven price before the expiration of the contract.
*Note: Infinity Hedge($EDGE) is a Stablecoin (pegged to $1) like USDT. The main purpose of this coin is for buying Infinity Call Options Smart Contract. The current price of INFI is 0.01 EDGE.
For example, the buyer bought a smart contract for a Premium of 900 EDGE (10% of the total cost) which gives the buyer the right, but not the obligation to buy 900,000 INFI for 9,000 EDGE at a strike price of 0.01 EDGE on or before 10/20/2023.
*Note: Breakeven is the sum of the Strike Price and Premium.
If the price of INFI surpasses the breakeven price of 0.011 EDGE before the expiration of the contract, the buyer profits from the call option. The buyer can exercise the call and buy INFI at the strike price, or in other words, at a price that is below the market value. The buyer can either keep the coins or sell them for a profit. But if the price goes down or does not surpass the breakeven price, you let the call option expire. In this case, you only lose the money you put in to buy the premium.