2021-03-30 23:40:50
March 26th was the expiration date for bitcoin options. Since then, BTC has grown by 15%
I suggest you figure out what options are?
Option - the RIGHT to buy or sell an asset in the future at the price set today.
For example, the December Bitcoin call option at $ 100K is currently trading at $ 9,480.
Premium - the price at which the option is purchased. Similar to insurance fees: the price is lower than the potential loss. In our example, the premium is $ 9480.
Call option - gives the right to BUY the asset in the future at a predetermined price.
Put option - gives the right to SELL the asset in the future at a predetermined price.
Underlying asset - what is given the right to buy / sell: stock, bitcoin, raw materials, currency.
Strike - the price at which the option holder has the right to buy or sell the underlying asset. In the example, the strike = $ 100k
Expiration is a certain point in the future when an option contract expires. In the example above, this is December 2021.
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