Using the Deribit Option Discovery Tool to Compare Crypto Option Trades
Summary
The document explains how to use an option discovery tool to turn a directional view and timeframe into three suggested BTC or ETH option trades. It walks through choosing a currency, selecting an upward or downward outlook, and setting an expiry. For each suggestion, the tool shows the strike, premium, relative cost, estimated chance of expiring in the money, and relative return. Expanded details include breakeven, maximum profit and loss, and an expiry payoff chart denominated in bitcoin and illustrated in dollars.
The examples distinguish buying calls for an upward view from buying puts for a downward view, and describe advanced suggestions that sell options. The guide warns that short options can have undefined risk and are unsuitable for beginners without understanding the exposure. Its probability and return indicators are comparisons among suggested contracts, not guarantees; the cited “high” probability for out-of-the-money options is still only roughly 40–50%. The examples use historical dates and prices, and the chart represents expiry outcomes, which can differ from the value of a position closed earlier.
Key ideas
- The tool filters BTC and ETH options by a selected price direction and expiry timeframe.
- Calls are suggested for an upward view, while puts are suggested for a downward view.
- Breakeven and expiry payoff charts help compare outcomes across strike prices and premiums.
- Relative probability and return indicators are estimates, not assurances of profit.
- Selling options can expose traders to losses beyond the premium received.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.