Tim McCourt, managing director of CME Group, said the company plans to launch options on bitcoin futures that will enable the company to sell or buy bitcoin futures after the expiration of the contract.

Bitcoin options will expire at the same time as the expiration of the underlying futures. This means that if the trader decides to realize the option after the expiration of the term, i.e sell or buy a position, it will be immediately converted into cash.

Buying a call option implies that the trader expects an increase in asset price, as well as the opening of a long position. Selling a “call” will close a position.

Conversely, when a trader buys a “put” option, he makes a profit from a price drop, which is similar to a short position.

The “call” option on bitcoin at $ 8,000 gives the trader the opportunity to buy bitcoin in the future for $ 8,000.

According to McCourt, options products make it possible to work with assets without buying or selling them.

“If I hold a long position on the asset and want to protect myself from the decline, I can buy a put, and if the price goes against me, I can sell the asset at a certain time with protection against collapse.”

The size of an option contract for bitcoin is equal to the size of a futures contract, or 5 BTC per contract. The minimum price fluctuation for a tick is 5 index points or $ 25 for a premium above 25 points.