# Options

> A contract that gives the buyer the right, but not the obligation, to buy or sell at a set price by a set date.

Canonical URL: https://fudfomo.co/glossary/options
Source: What The Block! Dictionary v1.0 (last updated 2026-04-25), browsable at https://wtb.fudfomo.co.

## Definition

An option is a contract giving the buyer the right to buy (a call) or sell (a put) an asset at a set strike price on or before a set expiry date. The buyer pays a premium up front; the seller takes on the obligation if the option is exercised.

Crypto options are growing in popularity for hedging and yield strategies. They are more complex than spot or futures and pricing them well requires understanding of volatility.

## Regulatory context

Options are restricted to qualified or institutional investors in many jurisdictions.

## Related terms

- [Futures](https://fudfomo.co/glossary/futures): A contract to buy or sell an asset at a fixed price on a future date.
- [Perpetual Futures](https://fudfomo.co/glossary/perpetual-futures): A futures contract with no expiry date. Common in crypto, kept in line with the spot price by funding payments.
- [Leverage](https://fudfomo.co/glossary/leverage): Trading with borrowed funds, so a small move in the price has a much bigger effect on your position.

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