Perpetual options

Calls and puts with no expiry. The buyer pays a continuous funding rate to the writer instead of rolling.

A perpetual option is a call or a put with no expiry. Instead of rolling contracts every expiry, the buyer pays a continuous funding rate to the writer.

The shape of a call at any moment: loss capped at what you've paid, upside above the strike.

Bought call

Payoff shape at expiry · not to scale

How it works#

No expiry. The position stays open until the holder closes or exercises it.
Funding instead of rollovers. The buyer pays a continuous funding rate to the writer.
Rate from value. The rate is derived from the option's value relative to its intrinsic value.
Fully collateralized. The writer's side stays fully collateralized throughout.

Why it streams natively#

For a dated option, Vanterra streams premium by accounting for it per second. For a perpetual, the premium is a continuous funding stream, so the stream is native rather than accounted.

Holding a view without rolling#

Pros can hold a view for as long as they want without the cost and timing risk of rolling at every expiry.