Trading financial derivatives has become increasingly accessible, and options stand out as one of the most versatile tools for modern traders. Bybit Options offer a structured, efficient, and secure way to engage with cryptocurrency markets using USDT and USDC-denominated contracts. Whether you're a beginner or an experienced trader, understanding how options work on Bybit can help you manage risk, diversify strategies, and potentially amplify returns.
This guide breaks down the fundamentals of Bybit Options, explores key trading tools, explains core concepts like call and put dynamics, and illustrates real-world trading scenarios—all while optimizing your understanding for practical application.
What Are Options?
An option is a type of derivative contract that grants the buyer the right—but not the obligation—to buy or sell an underlying asset at a predetermined strike price on or before a specific expiry date. In exchange for this right, the buyer pays a premium to the seller.
There are two primary types of options:
- Call Option: Gives the holder the right to buy the underlying asset.
- Put Option: Gives the holder the right to sell the underlying asset.
The option seller (writer) receives the premium and assumes the obligation to fulfill the contract if the buyer chooses to exercise it.
Bybit offers European-style cash-settled options, which means:
- They can only be exercised at expiration.
- No physical delivery of the asset occurs.
- Settlement is automatic based on the average index price from the 30 minutes preceding expiration.
- Payouts are calculated as the difference between the final settlement price and the strike price.
All options on Bybit are margined and settled in USDT or USDC, simplifying performance tracking and reducing currency conversion complexity.
👉 Discover how options can enhance your trading strategy today.
Key Benefits of Trading Options on Bybit
Risk Control with High Reward Potential
Options allow traders to define their maximum risk upfront—the amount paid as a premium. This makes them ideal for risk-averse investors. At the same time, call options offer unlimited profit potential if the market moves favorably. Put options also serve as effective hedges against downside risk in volatile markets.
Flexible Strategic Opportunities
Traders aren't limited to simple directional bets. With combinations like spreads, straddles, and strangles, options enable sophisticated strategies that can profit in rising, falling, or sideways markets.
No Funding Fees or Liquidation Risk (for Buyers)
Unlike perpetual futures, option buyers do not face funding fees or liquidation risks. This makes options particularly attractive for holding positions over time without worrying about margin calls. However, sellers do assume higher risk and may face liquidation if their collateral is insufficient.
Understanding Bybit’s Options Trading Interfaces: Explore, Easy, and Pro
Bybit provides three distinct trading modes to accommodate different experience levels:
Option Explore
Designed for newcomers, Option Explore highlights popular contracts based on 24-hour volume and open interest. It also allows users to track trades made by large or influential traders—offering insights into market sentiment.
Best for: Beginners interested in observing market trends and mimicking successful strategies.
Option Easy
This interface simplifies the trading process by presenting essential data such as expected profit, cost breakdown, and price movement indicators. It clearly displays potential gains and losses, helping users make informed decisions quickly.
Best for: Users with basic knowledge of options who want a streamlined experience.
Option Pro
Built for advanced traders, Option Pro includes a full options chain, supports multi-leg orders, and enables custom strategy creation. It offers detailed profit/loss analysis and real-time pricing data across multiple strike prices and expiries.
Best for: Experienced traders executing complex strategies like iron condors or butterfly spreads.
Core Options Terminology
Before trading, familiarize yourself with these essential terms:
- Call Option: Used when expecting the underlying asset’s price to rise.
- Put Option: Used when anticipating a price decline.
- Underlying Asset: The cryptocurrency (e.g., BTC) the option is based on.
- Strike Price: The price at which the asset can be bought or sold.
- Expiry Date: The date when the option contract expires.
On Bybit, option symbols follow this format: [Underlying]-[Expiry Date]-[Strike Price]-[Type]
Where:
C= CallP= Put
For example:
BTCUSDT-8NOV23-32000-P: A BTC/USDT put option with a $32,000 strike, expiring Nov 8, 2023.BTC-15FEB25-92000-C: A BTC/USDC call option with a $92,000 strike, expiring Feb 15, 2025.
How Call and Put Options Work: Buyer vs Seller Perspectives
| Option Type | Buyer's View | Seller's View |
|---|---|---|
| Call Option | Profits if market > strike price | Keeps premium if market ≤ strike price |
| Put Option | Profits if market < strike price | Keeps premium if market ≥ strike price |
Risk & Reward Summary
- Buy Call: Max loss = premium paid; Max gain = unlimited
- Sell Call: Max gain = premium received; Max loss = unlimited
- Buy Put: Max loss = premium paid; Max gain = strike price – premium
- Sell Put: Max gain = premium received; Max loss = strike price + premium
At expiration:
- If the settlement price is favorable (in-the-money), the option is automatically exercised.
- If unfavorable (out-of-the-money), it expires worthless.
👉 Start applying these strategies in a live market environment.
Real-World Trading Examples
Example 1: Buying a Call Option
In November 2023, BTC trades at $35,000. Ann believes it will rise above $37,000 by month-end. She buys a call option with:
- Strike: $37,000
- Expiry: Nov 31, 2023
- Premium: $1,000
Scenario A – Price rises to $40,000
- Ann exercises: ($40,000 – $37,000) = $3,000 profit
- Net gain: $3,000 – $1,000 premium = $2,000
Scenario B – Price drops to $34,000
- Option expires worthless
- Loss: $1,000 (premium only)
Bob, who sold the call, earns $1,000 if BTC stays below $37,000 but faces growing losses if it surges.
Example 2: Buying a Put Option
On December 1, 2023, BTC trades at $38,000. Bob expects a drop and buys a put:
- Strike: $37,000
- Expiry: Dec 31, 2023
- Premium: $800
Scenario A – Price falls to $35,000
- Bob exercises: ($37,000 – $35,000) = $2,000 profit
- Net gain: $2,000 – $800 = $1,200
Scenario B – Price rises to $39,000
- Option expires
- Loss: $800 (premium only)
Ann, the seller, keeps the $800 unless BTC drops below $37,000.
Frequently Asked Questions (FAQ)
Q: What happens if I hold an option until expiration?
A: Bybit automatically exercises in-the-money options. Out-of-the-money options expire worthless.
Q: Can I sell an option after buying it?
A: Yes. You can close your position before expiry by selling it back to the market.
Q: Are there any fees besides the premium?
A: Trading fees apply based on your tier but are separate from the premium. Check Bybit’s fee schedule for details.
Q: How is the settlement price calculated?
A: It's based on the average index price over the 30 minutes before expiration.
Q: Is there a minimum account balance to trade options?
A: No strict minimum, but you must have sufficient funds to cover premiums and margin (for sellers).
Q: Can I trade options on assets other than Bitcoin?
A: Yes. Bybit offers options on various cryptocurrencies including Ethereum and Solana.
👉 Explore more advanced features and unlock your full trading potential.
By integrating strategic flexibility with robust risk management tools, Bybit Options empower traders at every level. Whether you're hedging existing positions or speculating on volatility, mastering these instruments opens new dimensions in digital asset trading.