How Do I Manage My Portfolio on Premia?

Options are the most flexible financial instrument; they’re great for directional trades, hedging, and even yield. Here’s how you can buy some on Premia.

When you’ve bought some options, the next step is to manage your options portfolio.

When should I settle? When do I exit? What about the expiration date? How the heck do I sell my options? What about P&L cards?

This article should answer these questions along with a few others. Here’s how aspiring money makers can manage their portfolio on Premia.

Managing a Portfolio on Premia

So you’ve purchased an option or two. The next step is to navigate to the Portfolio page inside app.premia.blue.

It should look a little something like this (the -97% applies only if you’re as talented an options trader as me.)

The Portfolio page is where you can check on your existing positions (options, vaults, liquidity pools), see your all-time PnL chart, and manage your positions.

Let’s look at an example with my WETH-USDCe-12Jul-4200-C position. This is a WETH call option that expires on July 12th, after which I can exercise it for a profit or loss depending on the price of WETH.

But what if I wanted to exit this position early? What if my frens at the Ethereum Foundation start inexplicably moving around some funds and I begin to panic?

Look no further than selling your options back to the books. If there’s open quotes for your options, they can be sold at any time.

Now, to see the details for your option, simply click on it. Here, you can see things like the implied volatility and Greeks of your position along with the entry price and current fair value.

Even though I’m at a pretty bad loss of over 30% I’ll click on the blue button to try and close my position early. If there’s liquidity for your option, it should look a little something like this.

To close your position at the current price, just click on “Close position” and accept the transaction in your wallet. We’ll get to limit orders and how they work shortly.

After closing a position using this method of selling them, it can be viewed by clicking on “Closed” positions.

This is also where you can get your P&L card to share on socials! Of course, we closed at a loss, so we simply opt not to share it. As far as my timeline is concerned this trade never happened.

Limit Orders

So that’s how you close liquid options. But what if things look like this instead?

Here’s where you are able to choose a limit order — a type of order that sets a price at which your option will be sold.

Remember that limit orders don’t guarantee your order will be filled. They only guarantee a minimum price at which your order can get filled. Now, let’s see how it works.

Start by clicking on “Close Limit”. You’ll be taken to the Option-Chain view.

This is where you’ll set your desired limit price and the size you wish to sell. There’s a disclaimer though; all options on Premia are fully collateralized, meaning you have to hold the appropriate amount in the underlying asset.

It sounds like a bummer to lock up your capital until expiration, and it is. That’s why we’ve been building a proprietary portfolio margin system for the last 6 months.

Let’s continue. All that’s left is to sign the order and your limit order will be posted on Premia — and just like everything else, limit orders can be managed inside the Portfolio tab. We’ve finally come full circle!

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