Core Concepts

Options selling strategies revolve around capturing the time decay and volatility premium embedded in option prices.

Here are the fundamental concepts:

0DTE (Zero-Day-to-Expiry) Options

0DTE options are ultra-short-term derivatives that expire the same day they are issued.

They concentrate volatility, leverage, and theta decay into a single trading session.

This offers high yield potential — but also demands precise, real-time risk control.

Binary Options

Binary options are simplified derivatives that offer a fixed payout depending on whether a specific condition is met at expiry.

Unlike traditional options, their payoff is binary — either full payout or none — allowing precise control over maximum loss and potential return.

This makes them well-suited for options strategies like Genesis Vault, where defined risk is essential.

Option Premium

When traders buy options, they pay a premium — the upfront cost for potential upside or downside exposure.

The seller of the option (the Vault) collects this premium, which represents expected compensation for taking on risk.

The vault’s objective is to retain as much of this premium as possible before the option expires worthless.

Time Decay

In options markets, the value of an option decreases as it nears expiration — a phenomenon known as theta decay.

A 0DTE (zero-day-to-expiry) option expires the same day it’s created, meaning time decay happens extremely fast.

The vault captures this natural decay by selling short-dated options, earning the premium as the option’s value erodes toward expiry.

Implied Volatility

Option prices reflect expected volatility, known as implied volatility (IV).

Market participants tend to overpay for short-term protection, causing IV to trade higher than realized volatility.

By systematically selling these options, the vault captures this volatility risk premium — earning yield when actual market movements are smaller than expected.