Learn how bitcoin calls and puts work, then compare the different contract types.

What is a Bitcoin option?

A Bitcoin-related option gives its buyer a contractual right in return for a premium. A call benefits from a rise in its underlying price; a put benefits from a fall, all else equal. The seller receives the premium and takes the corresponding obligation.

The underlying may be a coin-price reference, a futures contract or fund shares. Those are different instruments. The name Bitcoin alone does not identify the quantity, exercise rules or currency in which the result is paid.

One-coin teaching examples

Assume an invented cash-settled contract covering one BTC. These prices and contract size are hypothetical. Actual products can reference different coin quantities, futures or fund shares.

Buying bitcoin calls

A call gives its buyer upside exposure to the specified underlying. For this example, use a strike of 100,000 USD per coin and a premium of 5,000 USD per coin. With the stated multiplier of 1, the premium cost is USD 5,000.

At expiration with the underlying at 110,000, intrinsic value is (110,000 − 100,000) × 1 = USD 10,000. After the premium, the gain is USD 5,000 before other costs.

At or below the strike, the call has no intrinsic value and loses its whole premium. Breakeven at expiration is 105,000 USD per coin. At 102,500, the call is in the money but still loses USD 2,500 after the premium.

Buying bitcoin puts

A put gives its buyer downside exposure. Assume the same 100,000 strike and 5,000-unit premium, costing USD 5,000 with the same multiplier. The equal call and put premiums are hypothetical, not a claim about actual market quotes.

At expiration with the underlying at 90,000, intrinsic value is (100,000 − 90,000) × 1 = USD 10,000. Subtracting the premium leaves USD 5,000 before costs.

At or above the strike, the put loses its full premium. Its breakeven is 95,000 USD per coin. At 97,500, it is in the money but still loses USD 2,500 after the premium. Before expiration, time and implied volatility also affect the price; these expiry calculations do not predict its resale value.

Price direction is only part of the trade

Before expiry, resale value depends on time remaining and implied volatility as well as the underlying price. A favorable move can be too small or too late to recover the premium. An option can lose its entire premium even when the longer-term market view proves correct.

A put can protect a holding for a limited period, but the quantity, reference price and expiry must match the exposure. An uncovered option writer can face losses far beyond the premium received.

Check the contract before applying the example

Some options settle financially. Others create futures positions or deliver fund shares. A profitable expiry can therefore leave another position to manage. The premium and the money needed to fund exercise are different amounts.

The product guides below explain those differences. See also settlement and risks.

Types of Bitcoin options

Sources and further reading

Contract information checked 14 September 2026. Examples are hypothetical and exclude fees and other trading costs. Editorial standards.

References

Currency quotations · Options on futures: exercise and assignment · Options basics

Examples are hypothetical and exclude fees and financing costs. Contract terms vary by product. Updated 14 September 2026.