Call vs Put Options: The Crypto Trader's Quick Guide to Options Basics

If you’re lurking in crypto trading communities, you’ve probably heard “buy the dip” or “hedge with puts.” But what are these mysterious Call and Put options everyone’s talking about?

The 10-Second Version

Call Option = Right to BUY at a fixed price Put Option = Right to SELL at a fixed price

That’s it. You don’t have to actually buy/sell—you can just flip the contract for profit.

How It Actually Works

Calls (The Bullish Play)

Imagine ETH is trading at $2,000. You buy a Call option at a $2,100 strike price expiring in 30 days, costing you $50 per contract. If ETH rockets to $2,500 before expiration, your option is now worth way more—you can either exercise it (buy 100 ETH at $2,100) or just resell the contract at profit.

Puts (The Downside Hedge)

Flip the scenario. You hold ETH but worried it might dump. You buy a Put at $1,900 strike for $50. If the market crashes to $1,500, your Put protects you—you can sell at $1,900 and lock in gains instead of taking the full hit.

The Expiration Game

Options don’t live forever. They expire (typically third Friday of each month for traditional markets). The closer to expiration, the faster the value decays—this is called time decay. Mark your calendar or your options become worthless.

The Real Move

99% of traders never exercise options. They just trade the contracts themselves. Buy cheap, sell high, pocket the difference. No need to actually touch the underlying asset.

That’s options 101. Once you get this, you’re ready to explore spreads, straddles, and all that spicy Greek-letter stuff.