You can replicate a call by trading its delta in the perpetual. Replication has two advantages: 1. It can outperform the option if vol realizes low 2. It's a nice way for perp maxis to experience options How can you try replication: • Run a dfollow bot on thalex • Trading fees are only 1 bps • You can track any option we list Caveats: 1. Chop increases replication cost b/c you're short vol 2. There is no clear max loss like a long option has 3. Best avoid short maturities, too much gamma How to think about it: Replication is short the volatility risk premium relative to owning the option. You win when that premium compresses and the path is not too mean-reverting. What if you're an option maxi? It can make sense to run a replicator. The example we show here is a nice one. Long-dated call 10 months out so delta does not swing wildly, upward slope in term structure, IV was rich at 50% (which re-rated to <40% later). Nothing prevents you btw from selling a call and replicating a lower strike, thereby creating a dynamic delta covered call.