Options

Crypto options trading for beginners: calls, puts and premium

6 min read · Updated 14 November 2026

Short answerA call option profits if the price rises above the strike; a put profits if it falls below the strike. When you buy an option, the most you can lose is the premium you paid.

An option is a contract with a price (the strike) and a date (the expiry). Buying one gives you the right, but not the obligation, to buy or sell the underlying coin at the strike on or before expiry. You pay for that right up front. That payment is the premium.

Calls and puts

Call: you want the price to go above the strike. It gains value as price rises.
Put: you want the price to go below the strike. It gains value as price falls.

Buying a Bitcoin call

Bitcoin is at $100,000. You buy a $102,000 call expiring in a week for a premium of $800.

At expiry Bitcoin is at $105,000: the call is worth $3,000, so you made $2,200.

At expiry Bitcoin is at $101,000: the call expires worthless. You lose the $800 premium, and nothing more.

Key words on an option chain

Strike: the price the option refers to.
Expiry: the date the option ends.
Premium: what the option costs right now.
ATM, ITM, OTM: at, in or out of the money, meaning whether the strike is near, already past, or still away from the current price.
Time decay: options lose value as expiry approaches if price does not move. Time works against the buyer.

The beginner traps

Buying cheap far-out-of-the-money options because they "could 10x". Most of them expire worthless.
Ignoring time decay and holding a losing option to expiry hoping for a turn.
Selling options without understanding the risk. A seller collects the premium but can lose far more than it.

Buying an option caps your loss at the premium. That makes it one of the clearest ways to learn risk, and a reason to practise before trading real options.

Practise this with virtual money

Trade Bitcoin and Ethereum calls and puts on a live option chain in Neeyum with virtual money, and see how premium and time decay behave before using real money.

Get Neeyum free on Google Play →Simulation only. No real money. Not financial advice.

Questions people also ask

What is the maximum loss when buying an option?

The premium you paid, plus any fees.

What happens at expiry?

An option that is in the money at expiry has value and is settled. One that is out of the money expires worthless.

Are crypto options available on Bitcoin and Ethereum?

Yes. They are the most traded crypto options. Neeyum uses live Bitcoin and Ethereum option chains for practice.

This guide is for education only and is not financial advice. Crypto and leveraged trading carry a high risk of loss. Neeyum is a simulator: it uses virtual money and never places real trades.