How to trade crypto options on Bybit

Crypto options are contracts that give you the right, but not the obligation, to buy or sell a digital asset at a set price on a predefined expiration date. Whether you’re looking to understand the basics or want to start placing trades, you need a clear picture of how the process works from beginning to end.

For Bybit crypto options trading, this process covers contract selection, order execution and position management. In this guide, we provide you a practical route through each of these stages, so you can move from choosing a contract to managing the result with confidence.

Key Takeaways:

• As an options buyer, you pay a premium to open a contract. Your maximum loss is generally limited to the premium paid plus any applicable fees.

• Bybit provides two main trading interfaces for options trading: Easy Options and the full Options Chain.

• An unfilled order you submit is distinct from an executed position you hold.

Crypto options explained: Calls, puts and premium

An option is a derivative contract that gives you the right, but not the obligation, to buy or sell an asset at a set price on a set date. The fee you pay for that right is called the premium.

Two main types of options cover the two possible price directions. A call option gives you the right to buy, while a put option gives you the right to sell. You buy a call when you expect the price to rise, and a put when you anticipate it to fall.

Three foundational terms apply to every options contract:

• Strike price is the level at which you can buy or sell the asset. 

• Expiration is the date on which the contract ends and settles. 

• Premium is what you pay upfront to hold the position as a buyer. If you sell an options contract, the buyer pays you the premium. 

The price of each contract’s premium is determined by the market and is based on a number of factors, including (but not limited to) the underlying asset traded, volatility, contract length, and the difference between the strike price and the asset’s current price.

Let’s consider an example with a Bitcoin (BTC) options contract. Say you buy a BTC call option with a strike price of $80,000 and an expiration at the end of the month. As a buyer, you pay a $2,000 premium. If BTC’s settlement price is $83,000 at expiration, the option has $3,000 of intrinsic value. After accounting for the $2,000 premium, the simplified gain is $1,000 before fees. If BTC settles at $80,000 or below, the call expires without value, so the buyer loses the premium paid. Excluding fees, that premium represents your maximum loss as the buyer. On the other hand, selling options involves higher risks. 

For how the risk profile changes when selling options, see Options explained: Calls, puts and key risks.

What to check before a Bybit options trade

Bybit Options trading requires an active Bybit account with Identity Verification (KYC) completed. Your funds for trading options must be available in your Unified Trading Account (UTA). If the funds are in another account, e.g., your Funding Account, transfer them to your UTA first.

Next, confirm your margin mode in the trading interface. Bybit Options supports both Cross Margin and Portfolio Margin mode. (Isolated Margin mode is not available for Options trading). To adjust your settings, go to Trade → Options, then select your preferred mode in the top-right corner of the interface.

Before placing your order, decide on a potential maximum loss amount you’re willing to take. As a buyer of options, your loss will be limited to the cost of the premium plus trading fees.

Finally, review the contract’s specific expiration date and time. Bybit Options are European-style, meaning they cannot be exercised early. If held to expiration, they are automatically cash-settled.

How to place a crypto options trade on Bybit

Note that the Trade → Options menu on Bybit’s website and mobile app also includes XAUTUSDT Options [gold-linked options settled in Tether (USDT)] alongside other crypto options products. Perp Options, a separate Bybit product, is available under TradFi → Options.

Below are the steps to place a crypto options trade on the Bybit App and on the website.

On the App with Easy Options

1. Launch the Bybit App and go to Trade.

2. Select Options and choose Easy mode. (Note: Easy mode on the App supports only the Buy function.)

3. Pick your coin.

4. Select a specific contract under Options profit scenario.

5. Enter your investment amount.

6. Review the order parameters and tap on Buy.

Check the contract name, expiration date, total cost (initial margin, or premium plus fees), breakeven point and maximum downside risk under P&L Analysis. The Easy Options walkthrough covers the full range of settings.



On the website with the Options chain

1. Navigate to Trade → Options.

2. Select the underlying trading pair, and filter by expiration date.

3. Select a Call (on the left) or a Put (on the right), and click on your preferred contract.

4. Review the price, implied volatility (IV), quantity and order total.

5. Submit your order.

The Options Chain gives you greater control and more granular market data than Easy Options, including Delta, IV and Bid/Ask depth. (See the strike and expiration comparisons for more details.) The Bybit Help Center explains the exact control mechanisms and order entry configurations in greater depth.

What happens after you place an options order?

A submitted order that hasn't been filled remains an active limit or conditional order, not an options position. Depending upon the order type, it may be waiting for its trigger or for market matching. Once an order fills, it becomes an executed options position, and gains exposure to changes in the option's value.

You can find unfilled orders under the Orders tab in the Options trading workspace. Filled positions are available under the Positions tab.

Before matching, you can modify the price or quantity of an unfilled limit or conditional order or cancel it at any time.

With an active long position, you can close early by placing an offsetting sell order or using the Close By option, which realizes current profit or limits loss. You can also hold until expiration, when cash settlement occurs automatically based on the final settlement price against the strike price. 

What are the costs and risks of crypto options trading?

Crypto options trading carries certain costs and risks you need to understand before opening a position. The option premium is the upfront cost you pay to purchase the contract. In addition, the platform charges trading fees as transaction costs, separate from the premium. You can review the details in Bybit's options fees guide.

All else being equal, time decay (theta) tends to reduce an option's extrinsic value as expiration approaches. Market liquidity determines how easily you can enter or exit a contract at favorable bid-ask spreads. 

Selling options can involve substantially greater risk than buying them, depending upon the particular position and strategy. Please note that trading outcomes and simulated P&L figures shown in the interface are not guaranteed.

The bottom line

Before starting with Bybit Options, ensure that you understand the contract settings, such as whether it’s a call or put, the expiration date and the costs involved. As a buyer of options, your costs will include the premium and transaction fees, and your risk will be capped by the combined amount. Also, make sure to monitor the placed order’s fill status and your position’s performance. To explore available contracts on Bybit, visit the Options main trading page.

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