Options Contract
The right, not obligation, to buy or sell at a set price — used for hedging, income, and defined-risk speculation.
An options contract gives the buyer the right — but not the obligation — to buy (a call) or sell (a put) an asset at a fixed “strike” price before expiry, for an upfront premium. Sellers collect that premium and take on the obligation if the buyer exercises.
Options enable strategies impossible with spot alone: hedging downside with puts, generating income by selling covered calls, or making defined-risk directional bets where the most a buyer can lose is the premium. Crypto options (Deribit dominates) are more advanced than spot or perps; the key variable is implied volatility, which prices how much movement the market expects.