Options
Right (not obligation) to buy/sell crypto at a set price.
Call (buy) and put (sell) options give the holder the right but not obligation to exercise. The seller gets a premium upfront. Top crypto options venues: Deribit (95% of volume), CME, OKX. Strategies: covered call (earn premium on BTC you hold), protective put (buy insurance against drops), straddle. Pro tool - most retail loses.
In plain words
You pay a small amount (premium) for the RIGHT to buy BTC at 100k USD in 3 months. If price goes to 150k you win.
Example
Deribit BTC 100k March 2025 call cost 5k USD with spot 70k - 10x payoff when BTC hit 100k in December 2024.
Also known as: call option, put option, crypto options