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Options Meaning

Financial derivatives that give the buyer the right, but not the obligation, to buy (Call) or sell (Put) an underlying asset at a specific price (Strike Price) on or before a certain date (Expiration). Options are used for two main purposes: Hedging and Speculation.

A miner might buy Put options to protect against the price of Bitcoin dropping, effectively locking in a minimum selling price for their mined coins. A speculator might buy Call options to bet on a price rally with limited downside risk (the cost of the option premium).

Crypto options are complex.

Unlike futures, they have "Greeks" (Delta, Gamma, Theta, Vega) that measure how the option's price changes relative to time, volatility, and the underlying asset price.

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