Hypercall founder says options must simplify trading to compete with perps

Hypercall founder Jake Sylvestre has called for simpler options trading, tighter spreads, and shared hedging accounts after the venue reported $536 million in September notional volume, out of $592 million since its June 1 launch.

Summary

• Hypercall reported $536 million in September volume, with most activity coming from S dP 500 trades.
• Sylvestre said repeat traders accounted for 93% of volume; the venue also ran $7,000 in incentives.
• Market makers can hedge options through Hyperliquid perpetuals from the same account, according to Sylvestre.
• Off-session options spreads tend to be 1.5--2 times their regular-session levels, the founder said.

Hypercall founder Jake Sylvestre told crypto.news that options platforms must reduce the number of decisions traders face while improving liquidity across contracts with different strike prices and expiry dates.

In his account, perpetual futures became popular because traders could choose a long or short position in one deep order book. Options spread activity across hundreds of contracts, each requiring buyers, sellers and prices, he said.

The founder's comments followed remarks at DAS by Hyperliquid founder Jeff Yan, who said he "would maybe look into options" if he could not work on infrastructure. According to the supplied event account, Yan also described how options market makers could hedge through Hyperliquid's perpetual markets.

Hypercall says simpler trades can reduce options complexity

For Sylvestre, an options interface should begin with the trader's intended position rather than a screen full of contracts. He said users should be able to express a view on a stock, choose how much to spend and receive a defined-risk trade explained in plain English.

Describing the experience he wants platforms to support, he used the example:

"I think Nvidia goes up this week, and I don't want to get liquidated"

Under his proposed approach, the platform would translate that view into an options position rather than require the user to work through the full options chain. He said trades should be sized from a dollar.

On liquidity, the founder called for professional market makers to quote continuously, alongside requests for quotes for large trades and strikes without standing prices. Hedging on the same venue forms another part of his proposed solution, because market makers need to manage the exposure they take from customers.

In discussing trading costs, he described spreads as "the tax that keeps people out." Options spreads remain measured in hundreds of basis points, while major perpetual markets trade at less than one basis point, according to his comparison.

Sylvestre said competition among market makers, portfolio margin and better volatility data could reduce those costs. He also said Hypercall is integrating Block Scholes to improve volatility information, including during periods when traditional reference markets are closed.

September volume followed a full month of new products

According to Hypercall's figures, the venue has traded $592 million in notional since June 1, including $536 million during September. Its reported lineup includes options linked to the S dP 500, Nvidia, Micron, Apple, Microsoft, Meta, Alibaba, SanDisk and SpaceX, alongside Bitcoin and Ether.

Explaining the September total, Sylvestre said it was the first month with the full product available at once. Bitcoin and Ether options launched at the end of August, making September their first complete trading month.

Weekend trading also began in August, while Alibaba and SanDisk contracts went live in the middle of that month, he said. The weekend service allowed traders to use options linked to companies such as Nvidia and SpaceX while listed options markets were closed.

Most September activity came from S dP 500 positions betting on the Iran war, according to the founder, who directed readers to Hypercall's published trade analysis.

On trader participation, Sylvestre said repeat users generated 93% of volume and disclosed a $7,000 HYPE incentive program. He also said Hypercall counts each trade once, rather than adding the maker and taker sides together.

Shared margin lets market makers hedge around the clock

Using an Nvidia call as an example, Sylvestre explained that a market maker selling the option takes exposure that can be offset by buying Nvidia perpetuals on Hyperliquid.

On Hypercall, he said, both positions can sit in the same account. The venue's account contracts send perpetual orders directly to Hyperliquid, and the resulting positions count toward portfolio margin, with all collateral denominated in USDC.

Because the hedge offsets part of the options exposure, Sylvestre said it reduces the option's margin requirement instead of requiring collateral on a second venue.

After the U.S. stock market closes, Hyperliquid's equity perpetuals continue trading, according to his explanation. The external reference price stays at the last fair value from the close, while orders determine trading prices within set bands, allowing market makers to adjust hedges overnight and on Sundays.

For options users, Sylvestre said off-session spreads typically reach 1.5--2 times regular-session levels. He added that pricing varies around earnings and economic events such as Federal Reserve decisions and nonfarm payroll releases.

Separately, Bloomberg's Michael McDonough said on Oct. 5 that Terminal users could monitor selected Hyperliquid perpetual market prices around the clock across crypto, equities, commodities, foreign exchange and indexes. The reported integration provides market data rather than direct trade execution.

U.S. access remains part of the regulatory discussion

Addressing reference prices, Sylvestre said market oracles supply the inputs, with trade.xyz providing most of the feeds for real-world asset contracts. He described the S dP 500 feed as officially licensed.

On the SpaceX contracts, the founder said Hypercall launched SPCX options on June 3, before the company's June 12 Nasdaq listing. During the first nine days, he said, the options referenced the Hyperliquid perpetual.

In related U.S. policy coverage published Aug. 19, Hyperliquid Policy Center and trade[XYZ] had proposed pre-IPO perpetual rules in an Aug. 18 submission to the SEC. The groups requested SEC and CFTC guidance on whether equity-linked perpetuals should be treated as security futures or security-based swaps.

Their proposal covered disclosures, listing eligibility, investor access and market integrity, including information about pricing, leverage, liquidations and settlement. The SEC's public posting confirmed receipt of the submission rather than approval of the products or recommendations.

Asked about Hypercall's regulatory approach, Sylvestre said the venue works closely with advisers on compliance and blocks prohibited jurisdictions.