💹 Jasper Vault Explained: How to Profit with Options
Last updated
Last updated
Jasper Vault simplifies options trading by offering innovative, leveraged trading products that allow users to maximize profits with minimal capital. Here’s everything you need to know about how our platform works, including a real-life example and step-by-step instructions.
Options grant traders the right, but not the obligation, to buy or sell an underlying asset at a predetermined price, or strike price, within a specified timeframe. This flexibility allows traders to explore various strategies based on their market outlook.
1. Call Option: Traders buy call options when they anticipate that the price of the underlying asset will rise.
2. Put Option: Traders buy put options when they anticipate the price of the underlying asset to fall.
Our flagship Degen 30-Min Options product lets you predict the direction of BTC’s price over short periods (i.e., 30 minutes). With leverage as high as 500x, you can control significantly larger positions by paying just a small premium upfront.
Capital Efficiency: While spot trading requires significant upfront capital, options allow you to trade larger positions with less.
Enhanced Profit: In options, profits can grow exponentially with price movements compared to spot trading.
Downside Risk Capped: Unlike perpetual contracts (perps), options on Jasper Vault have no liquidation risks, as the maximum downside is capped at the premium paid.
Here’s how you can profit on Jasper Vault:
Scenario:
Trade Size: 0.01 BTC
Trade Value: $1000 (BTC current price = $100K, $100K × 0.01)
Trading Period: 30 minutes
Premium Paid: $2 USDT
Prediction: BTC’s price will rise.
Outcome:
BTC’s price increases by $1000 within 30 minutes, reaching $101,000.
Gross Profit: $1000 (price change) × 0.01 BTC (option size) = $10
Net Profit: $10 (gross profit) - $2 (premium) = $8
ROI returns: $8 (net profit) ÷ $2 (premium) = 400%
With just $2 as your initial investment (the premium paid), you control a $1000 trade value, achieving 500x leverage. This means you’re gaining exposure to a much larger position with minimal capital.
Without leverage, you’d need to invest $1000 upfront to achieve the same $8 profit.
If you applied the same strategy with $1000 as the premium, your net profit could reach approximately $4000, showcasing the immense earning potential of Jasper Vault’s leveraged options strategy.
Unlike perpetual contracts, where a levered position can be liquidated even with small market movements, Jasper Vault eliminates liquidation risks. Your maximum loss is always capped at the premium paid, making it a safer and more predictable alternative to traditional leveraged perp trading.
