I would like to use trade OTC exotic options which unfortunately can not be accessed by retail traders due to capital requirements. I contacted some swiss banks to inquire about some structured products and exotic options and I was informed that I would need a minimum balance of 750,000 CHF just to become their client in the first place. As a retail trader who just want to hedge some of my market risk this amount of money is a bit too much for me.
Now, what I want to create as my hedge trade is sort of a multi-path dependent exotic options contract.
Any underlying or timeframe is ok for me, but I would prefer currencies or commodities and a one week or one month time frame.
Let me give an example:
Let an underlying be called abc(could be a stock, currency, commodity e.t.c). abc is currently trading at $100. A 30 days to expiration option chain show that the $90 put option is at a delta of 0.27 and $80 put at a delta of 0.11 and $110 call is at a delta of 0.27.
The question conditions:
Will stock abc currently trading at $100 meet all the four conditions below before the 20th of August 2021?
a. Must touch $90 price.
b. $110 price can not be touched until $90 is touched first.
c. After $90 is touched price must return to touch $100.
d. After $90 is touched, $80 can not be touched until price return to touch the $100 price first.
This is a hedge trade for me. As you can see this is high reward, low risk and low probability trade for those who bet on all conditions getting satisfied. I expect a reward to risk ratio of at least 7:1 for this bet(I don’t know if that’s to much or small)?
This is the bet I am interested in actively trading on Opium.Network but I am not sure if it is possible to create such a derivative. Hope to get a response from this forum.