Cash Settled MATIC Options: Campaign Rules and Call Payoff Example

Summary

This campaign notice describes a promotion for trading MATIC options and explains how a cash settled call payoff can be calculated at expiry. Its example uses a call with a stated strike and contract multiplier, then calculates the payoff from the difference between the expiry market price and strike multiplied by quantity. The notice says the awarded option may be a long call or put with near term expiry, while the exchange chooses the type, strike, and expiration.

The page also outlines campaign eligibility, a volume based leaderboard, prizes, and the timing for distributing options and USDC rewards. These terms are promotional and specific to a campaign that ran from May to June 2024; they do not provide a general options strategy or a comparison of option risks. The payoff example is limited to an in the money call at expiry and omits the option premium, fees, and any broader risk assessment. Readers should distinguish the example’s intrinsic payoff calculation from a complete profitability calculation.

Key ideas

• A cash settled call payoff at expiry depends on the amount by which the settlement price exceeds the strike, multiplied by contract quantity.
• The example uses a stated contract multiplier and strike to illustrate the payoff calculation for an in the money call.
• The promotion awarded a near term long MATIC option, with the exchange determining its type, strike, and expiry.
• Leaderboard rewards were based on MATIC derivatives trading volume during the campaign period.
• The example does not include the cost of the option or other expenses needed to assess net profitability.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.