In-depth Exploration of Crypto Assets Options Trading

In the current uncertain Crypto Assets market, Options trading is becoming an important tool for investors to manage risks. This article will introduce the basic concepts of Options trading, analyze the associated risks, and recommend several on-chain Options protocols worth paying attention to.

Options Trading Basics

Options are a type of derivative contract that gives the buyer the right to buy or sell the underlying asset at a predetermined price on a specific date. Options are divided into Call Options( and Put Options).

• Call Options: the right to purchase the underlying asset at an agreed price
• Put Options: the right to sell the underlying asset at an agreed price

The key elements of Options trading include:

• Underlying Asset: the asset on which the Options contract is based, such as a specific Crypto Asset
• Strike Price: The agreed-upon price for buying and selling the underlying asset
• Expiration Date: The effective period of the Options contract
• Options Fee: The cost paid for purchasing options

Investors can use Options to hedge risks or engage in leveraged trading. Compared to directly holding assets, Options have characteristics such as limited risk and high leverage, but they also come with a higher level of complexity.

Five On-Chain Options Protocols Worth Paying Attention To

( 1. Lyra

• Supported chains: Arbitrum, Optimism, Ethereum
• Trading varieties: ETH, BTC Options

Lyra Finance is a user-friendly Options trading platform that offers a variety of strike prices and expiration date choices, with good liquidity. It is suitable for seasoned traders looking for a traditional brokerage experience.

![A summary of 5 DeFi Options protocols worth paying attention to])https://img-cdn.gateio.im/webp-social/moments-cf08e16679ca1eb52ff33ad106a8c2cc.webp###

( 2. Hegic

• Supported Chains: Arbitrum, Ethereum
• Trading varieties: ETH, BTC Options

Hegic supports customizable expiration dates and provides one-click complex Options strategies. Its interactive charts visually display profit and loss under different prices, suitable for users seeking flexible strategies.

![A summary of 5 DeFi Options protocols worth paying attention to])https://img-cdn.gateio.im/webp-social/moments-4e37adb8bcd42d98b6fc98ec02ab4f8b.webp###

( 3. Whiteheart

• Supported Chain: Ethereum
• Trading varieties: ETH, BTC Options

Whiteheart provides a simple and easy-to-use interface, allowing users to lock in the current price by simply selecting the asset and the hedging days. It is suitable for novice users who wish to avoid short-term downside risks.

![A summary of 5 DeFi Options protocols worth paying attention to])https://img-cdn.gateio.im/webp-social/moments-fd85e09c8d75a896dd99ac3888260afb.webp###

( 4. Premia

• Supported Chains: Ethereum, Arbitrum, Optimism, Fantom
• Trading varieties: ETH, BTC, YFI, LINK and various asset Options

Premia offers options trading for low market cap assets, supporting custom expiration dates. Its options pricing dashboard helps users determine whether the option price is reasonable.

![A summary of 5 DeFi Options protocols worth paying attention to])https://img-cdn.gateio.im/webp-social/moments-4ad79f4283dfe89f562b90552afd8fc6.webp###

( 5. Siren

• Supported Chain: Polygon
• Trading varieties: ETH, MATIC, SUSHI and various asset Options

Siren provides an interface similar to traditional Options chains, supporting a wider variety of underlying assets and strike prices. It is suitable for users looking to trade Options on the Polygon network.

![A Summary of 5 DeFi Options Protocols Worth Paying Attention To])https://img-cdn.gateio.im/webp-social/moments-60a27e97c8f9a1039bf403f092ca52c1.webp###

Options trading can provide investors with flexible risk management tools, but it also comes with high complexity and risks. Investors should fully understand the relevant knowledge and carefully assess the risks before participating in options trading.