Bitcoin options are financial contracts that give the buyer the right, but not the obligation, to purchase or sell Bitcoin at a predetermined price within a specific time frame. These contracts allow traders to speculate on the future price movements of Bitcoin without actually owning it.

There are two primary types of Bitcoin options: call options and put options. A call option gives the holder the right to buy Bitcoin, while a put option gives the holder the right to sell it. Traders often use these options for hedging purposes or to leverage their investments. The price at which Bitcoin can be bought or sold through an option is called the strike price.

The expiration date is the last day the option can be exercised. Options can be traded on various exchanges and are often used by investors to manage risk or enhance potential returns in their trading strategies. Overall, Bitcoin options offer flexibility and can be an effective tool for those looking to capitalize on Bitcoin’s price fluctuations.