As Bitcoin continues to mature as a store of value and currency, it was just a matter of time until Bitcoin options started to emerge.
The first exchange to popularize BTC options was Deribit, however, it’s now far from being the only platform where they can be traded.
Since the Bitcoin options market is still very nascent, there are plenty of inefficiencies that savy cryptocurrency traders can exploit.
This article outlines the basics of what options are, how they work in the Bitcoin world, some actionable BTC options strategies, and where to trade them.
Introduction to Bitcoin Options
Options are a type of derivative contract that give its owner the right to buy or sell an asset at a specific price (the “strike” price) until a determined date (the “expiry” date).
The precise date they were first used is unknown, but they were already in use in Ancient Greece and then actively traded on a dedicated exchange that was launched in the 17th century in Japan.
Although options were initially designed to enable farmers to protect themselves against adverse price developments in the goods they were producing, today they are a multi-trillion dollar market that are part of the very backbone of the global financial sector.
While the exact size of the options market is unknown, it forms a big portion of the $500 Global Trillion derivatives market.
Bitcoin’s option market is certainly still magnitudes smaller, but it’s also seeing parabolic growth.
At the time of writing the Bitcoin options market regularly clocks in over $100m in daily trading volume, and is set to see further growth with firms like the CME joining the game.
Types of Options: Puts and Calls
There are two types of options: calls and puts.
Call options give their owner the right to buy Bitcoin at a specified price. Puts are mostly used by traders betting on a price rise in BTC, or hedgers protecting themselves for the possibility of it.
Call options are said to be “out of the money” if the Bitcoin price is lower than the strike price. They are “in the money” if the Bitcoin price is higher than the strike price. If at the expiry the option is “out of the money”, it expires worthless.
Put options give their owner the right to sell Bitcoin at a specified price. They are generally used by speculators expecting the price of Bitcoin to fall, or wanting to hedge against the possibility of a price decline.
Put options are said to be “out of the money” if Bitcoin price is higher than the strike price. They are “in the money” if the Bitcoin price is lower than the strike price. If at the expiry the option is “out of the money”, it expires worthless.
In addition to the option’s intrinsic value (“in the money” or “out of the money”), efficient markets usually pay a premium on top of that value for what “could happen”.
This is called the “Time Value” and is larger the further the option is from its expiry date.
Options trading strategies
As you have already realized by now, options are highly sophisticated derivatives contracts. This opens the door to a wide range of strategies to trade them.
While there are endless options trading strategies, here we’ll cover the 3 most popular ones, to get you started.
Covered Call
A covered call strategy consists in holding the underlying asset, while simultaneously selling a call option. Investors do this to earn a yield on their holdings from the options premium.
This could be an interesting strategy for a Bitcoin holder that believes the BTC price will stay mostly flat for the time being, but doesn’t want to sell his holdings.
Protective Put
A protective put strategy consists in holding the underlying asset, while simultaneously purchasing a put option. Investors use this strategy as “insurance” if they believe the asset could see some downside.
A Bitcoin investor could use this strategy if price has gone up significantly in a short time. This way, the Bitcoin holder would be protected in the case of a sharp price drop, but would still capitalize if BTC kept running higher.
Straddle
Straddles are an options strategy that doesn’t bet on the market going a particular direction. Instead, traders are betting on Bitcoin volatility, in either direction.
In a straddles trade, the speculator purchases call and put options with the same strike price. This will result in a profit as long as the asset moves far from said strike price.
Bitcoin investors can use this strategy if they expect BTC to make a big move, like during an important event or period of low volatility, but are unsure which direction the move will happen.
Where To Trade BTC Options?
Options are still a very new derivatives product in the Bitcoin economy. Hence, there are still significantly less avenues to trade it than the more adopted Bitcoin Futures contracts.
At the time of writing, by far the most popular Bitcoin Options exchange is Deribit.
Deribit currently offers 6 different expiry dates with 20 different strike prices for each. The simple user interface and low trading fees (0.04% per options trade), make Deribit a great options exchange for beginners.
More sophisticated options traders might want to have a look at FTX, which recently also launched Bitcoin Options. On the contrary to Deribit, FTX does not have a pre-set options orderbook and traders can instead manually design their own option.
To do so, simply head over to the “Options” tab on the exchange, and fill out the form with your desired strike price and expiry date. After just 10 seconds, the exchange will present you a bid and ask price, which you can chose to fill or not.
The exchange’s 0.05% trading fee makes it a bit more expensive than Deribit though.
Finally, it’s also important to note that exchange juggernaut CME recently also launched Bitcoin Options. That said, with a minimum trade size of 5 BTC, most retail traders will likely be more comfortable using Deribit or FTX.
Here are lots of ups and downs in the cryptocurrency market. Thanks for sharing information on a daily basis. I work for cryptocurrency so it is a really helpful post for me.
It’s not my first time to pay a visit this site,
i am visiting this web page dailly and get good facts from here all the time.
Glad to hear that.
Hey! I know this is kind of off topic but I was wondering if you knew where I
could find a captcha plugin for my comment form?
I’m using the same blog platform as yours and I’m having problems finding one?
Thanks a lot!
P.S. If you have a minute, would love your feedback on my new website
re-design. You can find it by searching for «royal cbd» —
no sweat if you can’t.
Keep up the good work!
Wonderful information! I got today from your blog. I was finding the latest news about MLM or Direct Selling Companies. It will help me to choose the best marketing method for business.
Finally, I saw a good article for a long time. thanks for sharing this updated information with us. as a software development company, we have to assist our clients with an updated blog like yours. I hope my clients will happy to read your articles.
very great website , i really learned a loot of things
Thank you! sharing New Updates, I really enjoy reading the news of Cryptocurrency and the Stock Market. I want to be an investor so , I read the market on a daily basis. your blog helps to know the perspective of the crypto and forex market.
Hello! This is my first visit to your blog! We are
a team of volunteers and starting a new initiative in a community in the
same niche. Your blog provided us beneficial information to
work on. You have done a outstanding job!
Seriously quite a lot of helpfgul data.
Best Essay writing
buy essay online reviews https://writepapersforme.com/
Seriously quite a lot of helpful data.
Best Essay writing
buy essay online reviews https://writepapersforme.com/
My brother suggested I might like this blog.
He was totally right. This post truly made my day.
You can not imagine just how much time I had spent for this
information! Thanks!
Wonderful article! This is the kind of info that are meant to be shared across the internet.
Shame on the seek engines for not positioning this post higher!
Come on over and consult with my web site . Thanks =) dildok3
Wonderful article! This is the kind of info that are meant to be shared across the internet.
Shame on the seek engines for not positioning this post higher!
Come on over and consult with my web site .
Thanks =) dildok3
you are really a just right webmaster. The web site loading velocity is amazing.
It seems that you are doing any unique trick.
Moreover, The contents are masterpiece. you’ve done a great process
on this topic!
Seriously quite a lot of helpful info!
Best Essay writing
boomessays review https://essayreviews.net/payforessay/
Thanks a lot. Ample posts!
Best Essay writing
custom writings review https://essayreviews.net/essayclick-review/
Thanks a lot. Ample posts!
Best Essay writing
custom writings review https://essayreviews.net/custom-writings-review/
Awesome content, Many thanks.
Best Essawy writing
essay writing https://termhelped.org/get-the-best-term-papers-writer/
Awesome content, Many thanks.
Besst Essay writing
essay writing https://termhelped.org/essay-writing/
First off I want to say awesome blog! I had a quick question which I’d like to
ask if you do not mind. I was interested to know how you center yourself and clear your thoughts prior to writing.
I have had difficulty clearing my thoughts in getting my thoughts out there.
I truly do enjoy writing however it just seems like the first 10 to 15 minutes are generally wasted
just trying to figure out how to begin. Any ideas or tips?
Thank you!
My brother recommended I might like this
web site. He was totally right. This post truly made my day.
You cann’t imagine simply how much time I had spent for this information! Thanks!
I get pleasure from, lead to I discovered just what I used to be looking for.
You’ve ended my 4 day lengthy hunt! God Bless you man. Have a nice day.
Bye
It’s truly a great and helpful piece of info. I’m happy that you shared this useful information with us.
Please stay us up to date like this. Thanks for
sharing.
My blog :: delta 8 near me
Wonderful article! This is the kind of information that are supposed to be shared around the internet.
Disgrace on the seek engines for now not positioning this put up upper!
Come on over and talk over with my website . Thank you =)
Feel free to surf to my site – Area 52 Delta 8 THC
I’m not sure where you are getting your info, but great
topic. I needs to spend some time learning much more or understanding more.
Thanks for fantastic information I was looking for this
information for my mission.
My web page … delta 8 thc
A person essentially lend a hand to make seriously articles
I might state. That is the first time I frequented your web page and up to now?
I surprised with the analysis you made to create this particular submit extraordinary.
Fantastic activity!
Here is my blog … best delta 8
Very energetic post, I loved that a lot. Will there be a part 2?
my website; area 52 delta 8 THC products
These are actually great ideas in concerning blogging.
You have touched some fastidious things here. Any way keep up wrinting.
Also visit my web blog – best delta 8 thc gummies
You really make it appear so easy together with your presentation but I to find this matter to be actually something which I feel I’d by
no means understand. It seems too complex and extremely vast
for me. I’m having a look forward in your subsequent
post, I’ll attempt to get the hang of it!
I’m really loving the theme/design of your site.
Do you ever run into any internet browser compatibility problems?
A few of my blog readers have complained about my blog not operating correctly
in Explorer but looks great in Opera. Do you have any suggestions to
help fix this problem?
Here is my website :: best delta 8 thc carts
Keep on writing, great job!
P.S. If you have a minute, would love your feedback on my new website
re-design. You can find it by searching for «royal cbd»
— no sweat if you can’t.
Keep up the good work!
Also visit my homepage :: delta 8 carts for sale
I could not resist commenting. Well written!
P.S. If you have a minute, would love your feedback on my new website
re-design. You can find it by searching for «royal cbd» — no sweat if you
can’t.
Keep up the good work!
Feel free to surf to my homepage; best delta 8 vape carts
Thank you a lot for sharing this with all people you really know what you are speaking about!
Bookmarked. Please also visit my website =). We will have a link trade arrangement between us
P.S. If you have a minute, would love your feedback on my new website
re-design. You can find it by searching for «royal cbd» — no sweat if you can’t.
Keep up the good work!
Also visit my web page; buy instagram followers
It’s remarkable to go to see this web page and reading the views of all
mates concerning this post, while I am also eager of getting
knowledge.
P.S. If you have a minute, would love your feedback on my new website
re-design. You can find it by searching for «royal cbd» — no sweat if you can’t.
Keep up the good work!
Also visit my blog post – buy instagram followers
What a stuff of un-ambiguity and preserveness of precious familiarity concerning unpredicted feelings.
P.S. If you have a minute, would love your feedback on my new website
re-design. You can find it by searching for «royal cbd» — no sweat if you can’t.
Keep up the good work!
Here is my web page: buy instagram followers
Hello! I know this is kinda off topic however , I’d figured I’d ask.
Would you be interested in trading links or maybe guest
authoring a blog post or vice-versa? My blog covers
a lot of the same subjects as yours and I believe we could greatly benefit from each other.
If you happen to be interested feel free to send me an e-mail.
I look forward to hearing from you! Excellent blog by the
way!
P.S. If you have a minute, would love your feedback on my new website
re-design. You can find it by searching for «royal cbd» — no
sweat if you can’t.
Keep up the good work!
My blog post; buy instagram followers
I every time spent my half an hour to read this webpage’s posts every day along with a cup of coffee.
P.S. If you have a minute, would love your feedback on my new website
re-design. You can find it by searching for «royal cbd» —
no sweat if you can’t.
Keep up the good work!
Here is my blog post; buy instagram followers
Hi there, I read your blog regularly. Your story-telling style is awesome, keep doing what
you’re doing!
Feel free to surf to my webpage – casino utan svensk licens
Excellent, what a blog it is! This blog gives valuable information to us, keep it up.
my website – slot
Wonderful beat ! I would like to apprentice at the same time as
you amend your website, how could i subscribe for a blog site?
The account helped me a applicable deal. I have been a little bit acquainted of this
your broadcast offered shiny transparent concept
Here is my homepage delta 8 gummies (http://www.seattleweekly.com)
Heya i’m for the primary time here. I came across this board and I find It really useful & it
helped me out much. I’m hoping to offer one thing back and
help others such as you helped me.
Also visit my blog; buy thc gummies
Hey I know this is off topic but I was wondering if you knew of any widgets
I could add to my blog that automatically tweet my newest twitter updates.
I’ve been looking for a plug-in like this for quite some time and was
hoping maybe you would have some experience with something like this.
Please let me know if you run into anything.
I truly enjoy reading your blog and I look forward to your new updates.
Here is my blog: Best Delta 8 THC Gummies
Touche. Sound arguments. Keep up the amazing
effort.
Also visit my blog post – slot
I got this web page from my buddy who told me on the topic of this website and now this
time I am browsing this website and reading very informative articles
or reviews at this place.
Also visit my blog post: slot online
Terrific work! This is the kind of information that are supposed to be shared around the web.
Disgrace on the seek engines for now not positioning this publish upper!
Come on over and visit my website . Thank you =)
My page: online slot
I am extremely impressed with your writing skills as well as
with the layout on your weblog. Is this a paid theme or did you modify it yourself?
Anyway keep up the excellent quality writing, it’s rare to see a nice blog like this one these days.
my page best delta 8 gummies
Thank you a lot for sharing this with all folks you really recognize
what you are speaking about! Bookmarked. Kindly additionally consult with my site =).
We can have a hyperlink trade agreement between us
My blog post; buy Instagram followers Twicsy
Aw, this was a really good post. Finding the time and actual effort
to produce a great article… but what can I say… I
put things off a whole lot and never manage to get nearly anything done.
Here is my webpage – Instagram likes (https://www.usmagazine.com/celebrity-body/news/buy-real-instagram-likes/)
Hello! Do you use Twitter? I’d like to follow you
if that would be okay. I’m undoubtedly enjoying your blog and look forward
to new updates.
My blog; followers
Link exchange is nothing else however it is just placing the other person’s webpage
link on your page at appropriate place and other person will
also do similar in support of you.
my blog post: best delta 8 gummies
Hello my friend! I want to say that this post is amazing, nice written and
include approximately all important infos.
I’d like to peer more posts like this .
Here is my site – best THC vapes (heraldnet.com)
Genuinely no matter if someone doesn’t know afterward its
up to other visitors that they will help, so here it takes place.
Here is my homepage: cannabis gummies
Hello there, You have done an excellent job.
I will certainly digg it and personally suggest to my friends.
I am confident they’ll be benefited from this site.
Also visit my web blog; Best THC Gummies – https://www.kitsapdailynews.com/marketplace/best-thc-gummies-top-3-marijuana-edibles-on-the-rise-in-2021/ –
Undeniably imagine that which you said. Your favourite reason appeared to be at the internet the simplest thing to understand of.
I say to you, I certainly get annoyed even as people consider worries that
they plainly don’t recognize about. You managed to hit the nail upon the top
as neatly as outlined out the entire thing with no need side effect ,
people could take a signal. Will likely be again to get more.
Thanks
Here is my web-site; Best THC Gummies
Do you have a spam problem on this blog; I also am a blogger,
and I was wanting to know your situation; we have created some nice practices and we are looking to
exchange solutions with other folks, please shoot me an e-mail if interested.
Also visit my blog :: THC Gummies
I visited various web sites except the audio feature for audio songs existing at this web site is really superb.
Here is my homepage … weed near me (http://www.peninsuladailynews.com)
May I simply just say what a relief to find someone who actually
knows what they are discussing on the internet.
You definitely realize how to bring a problem to light and
make it important. More people ought to read this and understand this side of
the story. I can’t believe you’re not more popular because you definitely
possess the gift.
My site; buy weed online
Your mode of telling everything in this article is actually pleasant, every one be able
to without difficulty know it, Thanks a lot.
Feel free to surf to my homepage: shop for weed online
I loved as much as you will receive carried out right here.
The sketch is tasteful, your authored material stylish.
nonetheless, you command get bought an edginess over that you wish be delivering
the following. unwell unquestionably come more formerly again since exactly the same nearly very
often inside case you shield this increase.
Here is my homepage – where to buy weed near me
Hello would you mind letting me know which webhost you’re working with?
I’ve loaded your blog in 3 different web browsers
and I must say this blog loads a lot quicker then most.
Can you suggest a good hosting provider at a reasonable price?
Cheers, I appreciate it!
Also visit my website marijuana dispensaries
I could not resist commenting. Perfectly written!
Also visit my website … buy tiktok followers
Hey just wanted to give you a quick heads up.
The words in your post seem to be running
off the screen in Internet explorer. I’m not sure if this is a format issue or something to
do with web browser compatibility but I thought I’d post to let you know.
The layout look great though! Hope you get the issue solved soon. Cheers
Visit my web site – buy weed
Hello it’s me, I am also visiting this website regularly,
this web site is in fact pleasant and the people are truly sharing pleasant thoughts.
My homepage – tiktok followers
What’s up, just wanted to mention, I enjoyed this article.
It was practical. Keep on posting!
My web page tiktok followers (http://www.usmagazine.com)
It’s amazing to visit this web page and reading the views of
all colleagues concerning this article, while I am also eager of getting familiarity.
my web-site: buy tiktok followers, usmagazine.com,
I was recommended this web site by way of my cousin. I am now not certain whether this post is written by means of
him as no one else recognise such particular approximately my trouble.
You’re wonderful! Thanks!
Here is my blog post; buy Instagram followers
Thanks for sharing your thoughts on cbd gummies for pain. Regards
my web blog :: best cbd gummies for pain
Hi would you mind letting me know which hosting company you’re working
with? I’ve loaded your blog in 3 different web browsers and
I must say this blog loads a lot faster then most. Can you recommend a
good internet hosting provider at a reasonable price?
Kudos, I appreciate it!
Also visit my web page; best kratom
I think this is one of the most significant info for me.
And i am glad reading your article. But should remark on some
general things, The site style is ideal, the articles is really great :
D. Good job, cheers
Here is my webpage … best kratom (Amelia)
I’ve been browsing online more than 3 hours as of late, but I by
no means discovered any fascinating article like yours.
It is pretty worth sufficient for me. In my opinion, if all web owners and bloggers made good content material as you probably did,
the net will be much more useful than ever before.
Here is my blog … best kratom
I know this site gives quality based content
and other information, is there any other web page which offers these kinds of things in quality?
I read this paragraph fully regarding the resemblance of newest and
previous technologies, it’s remarkable article.
The other day, while I was at work, my cousin stole my apple ipad and tested to see if it can survive
a 30 foot drop, just so she can be a youtube sensation. My apple ipad is now broken and she has 83
views. I know this is completely off topic but I had to share it with someone!
Attractive section of content. I just stumbled upon your site and in accession capital to say that I acquire in fact enjoyed account your weblog posts.
Anyway I will be subscribing on your feeds or even I fulfillment you get entry to constantly fast.
Admiring the time and energy you put into your site and
in depth information you offer. It’s good to come across a blog
every once in a while that isn’t the same old rehashed information. Great
read! I’ve bookmarked your site and I’m adding your RSS feeds
to my Google account.
These are truly wonderful ideas in concerning blogging.
You have touched some fastidious points here. Any way keep up wrinting.
Here is my homepage – 300 capsules of premium maeng da kratom
Every weekend i used to go to see this web site, for the reason that i wish for enjoyment, as
this this site conations genuinely fastidious funny information too.
My web page; deta 8 vapes
I am genuinely happy to read this webpage posts which includes lots of
helpful data, thanks for providing these information.
Review my web-site – best cbd capsules for pain,
Wonderful goods from you, man. I’ve bear in mind your stuff prior to and you’re simply extremely great.
I actually like what you have obtained here,
certainly like what you are stating and the best way in which you say it.
You’re making it entertaining and you still take care of to keep it smart.
I can’t wait to learn much more from you. This is actually a great site.
Stop by my site :: shelf life of cbd gummies
I appreciate, lead to I discovered just what I used to be looking for.
You have ended my four day lengthy hunt! God Bless you man. Have a nice day.
Bye
Feel free to surf to my web site; we are cbd gummies
Currently it seems like WordPress is the preferred blogging platform available
right now. (from what I’ve read) Is that what you
are using on your blog?
Here is my site: cbd gummies effect
Right away I am ready to do my breakfast,
once having my breakfast coming again to read further news.
Feel free to surf to my page … cbd gummies 3000mg jar
What a stuff of un-ambiguity and preserveness of valuable familiarity on the topic of unexpected
emotions.
Feel free to visit my homepage; can you buy legal hemp bombs cbd gummies in virginia washington
I think everything said was very reasonable. But, consider this, what if you
typed a catchier post title? I ain’t saying your content is not good, however what if you added a post
title that makes people desire more? I mean How To Trade Bitcoin Options (Basics & More) – CoinDiligent is kinda plain.
You could peek at Yahoo’s home page and see how they create post headlines to get
viewers to click. You might add a related video or a related pic or two to grab people excited about what
you’ve written. In my opinion, it would bring your posts a little bit more interesting.
Stop by my webpage; how long does cbd infused gummies take to work
Hi to all, how is the whole thing, I think every one is getting more from
this site, and your views are fastidious in support of new people.
my website: cbd gummies for sale in greenville sc
I’m excited to uncover this page. I want to to thank you for your time due to this fantastic read!!
I definitely liked every part of it and I have you saved as a favorite to see new information in your
web site.
My page; candy king cbd gummies
Howdy, I think your site might be having browser compatibility
issues. When I look at your website in Safari, it looks fine however, when opening in IE, it’s got some overlapping issues.
I merely wanted to give you a quick heads up!
Other than that, excellent blog!
I was wondering if you ever considered changing the layout of your site?
Its very well written; I love what youve got to say. But maybe you
could a little more in the way of content so people could connect with it
better. Youve got an awful lot of text for only
having 1 or 2 pictures. Maybe you could space
it out better?
Wow, this paragraph is pleasant, my younger sister is analyzing these things, thus I am going
to let know her.
I really like looking through a post that will make men and women think.
Also, many thanks for allowing for me to comment!
I pay a visit everyday some sites and websites to
read articles or reviews, but this webpage offers quality
based writing.
Greate post. Keep posting such kind of info on your page. Im really impressed by your
site.
Hey there, You have performed an excellent job.
I will definitely digg it and personally suggest to my
friends. I’m sure they will be benefited from this site.
Wonderful article! That is the kind of information that should be
shared around the web. Disgrace on the search engines for not positioning this publish higher!
Come on over and visit my web site . Thanks =)
Now I am ready to do my breakfast, after having my breakfast
coming yet again to read further news.
Фільми та серiали 2020 українською мовою в HD якості link
Всі фільми новинки 2020 року онлайн українською
в хорошій якості link
Фільми та серiали 2020 українською мовою в HD якості link
Нові фільми 2021 року. link
Дивитися фільми українською онлайн link
Дивитися популярні фільми 2021-2021 року link
Howdy would you mind sharing which blog platform you’re
working with? I’m planning to start my own blog in the near
future but I’m having a tough time making a decision between BlogEngine/Wordpress/B2evolution and Drupal.
The reason I ask is because your design seems different then most blogs and I’m looking
for something completely unique.
P.S My apologies for getting off-topic but I had to ask!
Найкращі фільми 2021 Золото 17 серия
I want to to thank you for this excellent read!!
I certainly loved every bit of it. I have you book-marked to check out new things you post…
Дивитися фільми українською онлайн
Папы 2022
Не пропустіть кращі новинки
кіно українською 2021 року Link
Всі фільми новинки 2020 року онлайн українською в хорошій якості Папы 2022
Дивитися фільми українською онлайн Ураганные Хроники 435 эпизод (Наруто 2 сезон)
Фільми та серiали 2020 українською мовою в HD
якості форсаж: хоббс и шоу
Дивитися фільми українською мовою
онлайн в HD якості Кости
Дивитися популярні фільми 2021-2021 року Link
Дивитися популярні фільми 2021-2021 року Link
Фільми та серiали 2020 українською мовою в HD якості Link
Новинки фільми, серіали, мультфільми 2021 року, які вже
вийшли Ви можете дивитися українською на
нашому сайті Вечер с Владимиром Соловьевым
Фільми українською в хорошій якості –
онлайн без реклами Вечер с Владимиром Соловьевым
Фільми та серiали 2020 українською мовою в HD якості Вечер с Владимиром Соловьевым
Фільми та серiали 2020 українською мовою в HD якості z.globus-kino.ru
Найкращі українські фільми 2021 року filmiwap.store
Hey There. I discovered your blog the usage of msn. That
is a very neatly written article. I’ll make sure to bookmark it
and return to read more of your helpful information. Thanks for the post.
I will definitely return.
Дэдпул 3
I every time used to read paragraph in news papers but now
as I am a user of web so from now I am using net for articles, thanks to web.