# For Option Traders

### Overview

This section explains how options trading works within Stryke’s **Concentrated Liquidity Automated Market Maker (CLAMM)**. It covers expiries, strike selection, exercising mechanisms, and the pricing model based on implied volatility (IV). The CLAMM interface supports both quick trade execution and detailed strategy management for all levels of traders.

### Option Expiries

CLAMM supports two fixed expiry types for consistency and predictable trading cycles:

* **Dailies:** Expire at **08:00 UTC every day**.
* **Weeklies:** Expire at **08:00 UTC every Friday**.

After each expiry, a **blackout period** of up to **two hours** occurs.\
During this time, trading is paused so liquidity providers can rebalance their positions before the next trading cycle begins. This approach simplifies expiry management for traders and ensures smooth liquidity transitions across markets.

### Trading on UniV3 Ticks

Options are traded on **Uniswap V3 ticks**, allowing for precise strike selection and efficient use of liquidity. This structure ensures tighter pricing, better execution, and improved capital utilisation compared to traditional options models.

### Interface Modes

The CLAMM trading interface offers two modes for better control and visibility:

* **Options Chain Mode:** View available options by strike and expiry to select contracts directly.
* **Price Chart Mode:** Monitor live price movement, volatility, and market trends to make informed trading decisions.

Both modes can be toggled seamlessly, allowing traders to analyse and execute trades within a single interface.

### Strike Selection

Traders can choose from a wide range of strike prices for both call and put options.\
This flexibility allows users to structure positions that reflect their market outlook and risk preference. All strike levels are derived from CLAMM’s tick based price system for precision.

To see how to navigate the interface and execute trades, visit the [UI Walkthrough](https://docs.stryke.xyz/ui-walkthroughs) for a detailed guide on trading options through CLAMM.

### Exercising Options

**Manual Exercise**

Options can be exercised manually at any time before expiry, giving traders full control over when to settle their positions.

**Auto Exercise at Expiry**

Options are automatically exercised **after expiry**, and the exact execution time may vary depending on market conditions. This ensures that in the money (ITM) options are settled efficiently without requiring any manual action from the trader.

### Fees

A **15% fee** is charged on the option premium when purchasing options through CLAMM.\
No fees are applied for adding or managing liquidity. All applicable fees are shown in the interface before confirming a trade. For more details, see the [Protocol Fees](https://docs.stryke.xyz/tokenomics/protocol-fees) page.

### Volatility and Pricing

CLAMM uses the **Black Scholes model** to determine option prices.\
Implied volatility (IV) is sourced from real time market data through onchain oracles, ensuring pricing remains accurate and responsive to market conditions.\
This system allows traders to make informed decisions using live volatility inputs rather than static assumptions.