Read a position

Every position answers four numbers up front, plus whether it reads as a hedge or a punt.

The four numbers

Number	What it means	Formula
Leverage	ETH exposure per dollar of premium	notional / premium
Max loss	The worst case, always the premium you paid	premium paid
Breakeven	Where you start to profit at expiry	UP: strike + premium, DOWN: strike - premium
Value now	The current mark (what you would get closing early)	live bid

Moneyness

• ITM (in the money): the option already has intrinsic value (a call with spot above strike). Higher win probability, lower leverage.
• OTM (out of the money): no intrinsic value yet, needs a move to pay off. Lower win probability, higher leverage, bigger potential multiple.

Hedge or punt

A quick heuristic the app uses: leverage at or below about 5x reads as a hedge (a measured view or protection), higher reads as a punt (a leveraged directional bet). Neither is wrong. It is about matching the position to your intent.

Scenario P&L

The card shows a payoff curve and "if ETH ends at $X" anchors, so you can see what the position is worth across a range of expiry prices. Because the upside is convex above breakeven, a call payoff accelerates as ETH climbs, with the downside still capped at the premium.

  value at expiry
   │                         ╱  ← convex: each dollar of ETH
   │                      ╱       adds more to a winning call
   │                   ╱
 0 ├──────────●━━━━━╱──────────▶ ETH at expiry
   │     premium   breakeven
   │   (flat max-loss floor)

TIP

All of these numbers come from one shared math core, so the position card, the explainer, and the in-app assistant always agree. If two views ever disagree, treat it as a bug and tell us.