LP or sell the option?

A concentrated range kept on the price and a short at-the-money option are two ways to sell the same risk: that the stock moves a lot. This playbook uses vol ratio to decide which one is paid better right now.

#1. Shortlist in Discover

Open Discover, keep the Simple view, set the window to 24h and sort by Vol ratio.

Skip pools without a chip rating. No benchmark means there is no listed option to compare against.

#2. Read the chip

• Well paid (1.2× or more). The pool pays more for the risk than the options market. LPing is the better-paid way to sell this volatility.
• Fair (0.9× to 1.2×). About even. Other things decide: capital efficiency, your access to options, how actively you want to manage.
• Underpaid (below 0.9×). The options market pays more for the same risk. If you want to sell this stock's volatility, writing the option is the better-paid route, or skip it.

#3. Check what the ratio stands on

Hover the vol ratio cell, or open the pool and look at the Vol ratio by width tab.

• The width. The headline is the widest range whose matching option is listed. If you plan to LP much tighter, look at the ratio at your width.
• The ≈ sign. It means the matching option is longer than any listed expiry, so the comparison is looser.
• Seven days of fees. Check Price and fees. If most of the week's fees came in one burst, the ratio may not last.

#4. Check what the ratio leaves out

• Flags. Switch to the Risk view or check the pool page. Vol spike, One-sided or Launch mean the last week may not describe the next.
• The open. A tokenised stock can gap when the US market opens. A tight range gets run over; an option writer takes the gap too, but a range can't be hedged as simply. Wider ranges suffer less.
• Earnings and events. Options price known events such as earnings into their IV, while a week of fees knows nothing about next week. A high ratio just before earnings is a warning, not a gift.

#5. Size it with the planner

Open Plan a range, pick your width and size, and read Vs listed options and Premium gap. They repeat the comparison for your exact range, in vol points and in dollars.

#Example

A pool shows Well paid 1.45× at ±10%, measured against a 23-day option.

• Seven days of fees imply the range breaks even at 41% volatility, while the matching option's bid IV is 28%.
• The Price and fees chart shows steady fees through the week, with no flags.
• In the planner at ±10% and $10,000, Vs listed options reads +13 vol points.

Reading: LPing this pool paid clearly better than writing the option last week, on steady flow. Before depositing, check the earnings calendar and decide how you'll handle the next US open.

Illustrative numbers.