Skip to main content

What is a Put Option?

  • Updated

A Put Option is a type of Crypto Option contract that gives you the right, but not the obligation, to sell the underlying cryptocurrency at a specified Strike Price on or before the Expiration Date.

 

When to use Put Options

Put Options are typically purchased when a trader believes that the price of the underlying cryptocurrency will fall, allowing them to potentially profit from the difference between the strike price and the market price at the time of exercise.

 

Example

Let's say you buy an ETH put option with a Strike Price of $3,000 and an Expiration Date one month from now. If the price of ETH falls to $2,500 before the expiration date, you can exercise the option to sell ETH at $3,000, effectively profiting from the $500 difference, minus the Premium paid.

Related articles

This website is operated by HDR Global Trading Limited, a company incorporated under the International Business Companies Act of 1994 of the Republic of Seychelles with a company number of 148707 and registered address at Global Gateway 8, Rue de la Perle, Providence Mahé, Seychelles (“HDR”). HDR wholly owns BitMEX, a Bitcoin-based trading platform.


Access to trading or holding positions on BitMEX is prohibited for any person or entity that is located, incorporated or otherwise established in, or a citizen or a resident of: (i) the United States of America, Québec (Canada), the Hong Kong Special Administrative Region of the People’s Republic of China, the Republic of Seychelles, Bermuda, Cuba, Crimea and Sevastopol, Iran, Syria, North Korea or Sudan; (ii) any state, country or other jurisdiction that is embargoed by the United States of America; or (iii) any other jurisdiction where the services offered by BitMEX are restricted (collectively “Restricted Jurisdictions”). If it is determined that any BitMEX user has given false representations as to their location, incorporation, establishment, citizenship or residence, or HDR detects a user is from a Restricted Jurisdiction as described above, HDR reserves the right to immediately close their accounts and liquidate any open positions. HDR may, in its sole discretion, implement controls to restrict access to the BitMEX trading platform in any of the Restricted Jurisdictions.