Bybit Options Lesson: What Are Options?

• Options are a form of derivatives that give traders the right to buy or sell an underlying asset at a predetermined price and date. 

• Buyers have to pay a premium for a call or put option for the rights to the contract.

• Crypto options have gained popularity because they don’t require substantial capital to get started and can potentially generate higher percentage returns.

Options contracts are derivatives, meaning they're tied to an underlying asset such as a stock, a commodity or a cryptocurrency. Essentially, an options contract gives you the right to buy or sell an asset at a specific price within a given time frame or at a particular expiration date, depending upon the type of contract you choose.