OCT 4, 2026
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An option gives you the right, but not the obligation, to buy or sell an asset at a set price by a set date. You pay a price for that right, called the premium, and that’s the most a buyer can lose. This lesson covers the building blocks and how they work on Aevo. When you are ready, you can trade crypto options on Aevo.
IN THIS LESSON
A call profits when price rises above the strike. A put profits when price falls below it.
A buyer’s maximum loss is the premium. A seller takes on the risk and collects the premium.
Premium is intrinsic value plus extrinsic value, and implied volatility is the biggest driver of the extrinsic part.
Aevo options are European-style and cash-settled in USDC, expiring at 08:00 UTC.
01
The building blocks
Call. The right to buy at the strike price.
Put. The right to sell at the strike price.
Strike. The price written into the contract.
Expiry. The date and time the contract ends. On Aevo that’s 08:00 UTC.
Premium. What the buyer pays the seller for the contract.
If you think Bitcoin will rise, you can buy a call. If you want protection against a fall, you can buy a put. Either way, the most you can lose as the buyer is the premium.
02
What an option pays at expiry
Take a call with a strike of 100 that cost 5. At expiry the option is worth the amount by which price exceeds 100.
Price at expiry
Option payoff
Profit after the 5 premium
90
0
-5
100
0
-5
105
5
0
120
20
+15
Losses stop at the premium, and gains grow as price rises. That’s the asymmetry people want from options.
04
How Aevo's options work
European-style. An option can only be settled at expiry. You can’t exercise early, but you can always sell the position back before expiry.
Cash-settled in USDC. Nothing is delivered. In-the-money options pay out automatically in USDC at expiry.
08:00 UTC expiry. Not a US market close and not midnight.
Same account as your perps. Options share a cross-margin account with perps. See unified margin.
Because settlement is in cash, a seller of a call doesn’t need to hold the token. They need margin.
05
Buying against selling
Parameter
Buyer
Seller
Pays or receives
Pays premium
Receives premium
Maximum loss
The premium
Can be large, depends on the option
Maximum gain
Can be large
The premium
Needs margin
No, the premium is the cost
Yes
Selling options is not free money. A short option carries an obligation, and margin requirements can rise as the position moves against you.
06
Two ways to trade options on Aevo
Easy Mode reduces an option to three decisions: direction, target and timeframe. It trades real calls and puts on BTC, ETH and HYPE. See Easy Mode.
Pro Mode gives you the full options chain with strikes, expiries and Greeks.
If you hold a perp and want protection, hedge perps with options builds the option for you. For large or unusual trades, Aevo OTC quotes custom strikes and dates. Why more perp traders haven’t adopted options is covered in our piece on options adoption in crypto.
You buy a put with a strike of 100 for a premium of 4. What is the most you can lose?
A buyer's maximum loss is the premium paid. The put gains value as price falls below 100, and it expires worthless otherwise.
On Aevo, what happens to an in-the-money option at expiry?
Aevo options are European-style and cash-settled in USDC. There is nothing to submit and nothing is delivered.
WHERE TO GO NEXT
If you want the option itself, Aevo is an options dex. For the theory behind floors, caps and collars, read how to hedge crypto. Start with how to trade perpetual futures if funding, mark price and liquidation are new to you. New to derivatives? The crypto derivatives guides take you from your first perp to hedging in seven short lessons.
07
Frequently asked questions
What is a call option?
+
What is a put option?
+
What is the premium?
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What does European-style mean?
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Are options better than perps?
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Put the lesson to work
Practice on testnet or start small on mainnet.
Launch Exchange ↗
LEVEL
BEGINNER
TIME
12 MINUTES
PRIOR KNOWLEDGE
PERPS HELP
WORKED EXAMPLES
ILLUSTRATIVE
LEARN / OPTIONS / LESSON 3
This lesson is for education only and isn’t financial advice. Leveraged products can lose more than you expect, quickly. Worked examples are simplified and use illustrative numbers.