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Ping-Pong Option Vault
The new and improved

What is a Ping-Pong Option Vault?

This is an advanced structured product strategy that aims to generate yield by rotationally selling calls and puts each time a short option position is exercised. By rotationally selling calls and puts, users avoid crystallizing losses and generate superior returns as opposed to the simple DeFi Option Vault.

Implementation Example

  • Teragon Global Crypto Index (GCI) Call/Put Rotator Vault on BSC
  • Users deposit Teragon GCI into the Vault
  • The vault sells a one-week call option
  • If the call is not exercised, users receive the option premium as additional Teragon GCI vault tokens. The strategy again sells call options for next week’s expiry
  • If the call is exercised, user deposit and option premium is converted to BUSD at the strike price. The strategy now sells put options for the next week’s expiry
  • The put options follow the same logic. Strategy continues selling put options if the puts end up out of the money. If the puts get exercised, then the strategy switches back to selling calls.
For more information regarding Strike, Settlement, Fund Movement and Deadlines, refer to the link
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What is a Ping-Pong Option Vault?
Implementation Example