1. What Are Options?
Options are derivative contracts granting the holder the right—but not the obligation—to buy or sell an underlying asset at a predetermined strike price on or before a specified expiration date.
Key Features of Options:
- Holder: Buys the right to exercise the option (call or put).
- Writer: Obligated to fulfill the contract if exercised.
- Premium: Price paid to purchase the option.
Core Components:
| Term | Description |
|---|---|
| Underlying Asset | Traded asset (e.g., BTC/USD or ETH/USD index). |
| Expiration Date | When the option contract expires. |
| Strike Price | Predetermined price to buy/sell the asset. |
| Contract Type | Call: Right to buy; Put: Right to sell. |
| Exercise Style | European: Exercisable only at expiration (OKX default). |
Moneyness Classification:
| Contract Type | Condition | Classification |
|---|---|---|
| Call Option | S > K | ITM (In-the-Money) |
| S < K | OTM (Out-of-the-Money) | |
| S = K | ATM (At-the-Money) |
2. OKX Options Contract Specifications
Overview:
| Parameter | BTC Options | ETH Options |
|---|---|---|
| Contract Types | Calls & Puts | Calls & Puts |
| Exercise Style | European | European |
| Expiration Dates | Daily, weekly, monthly, quarterly (March/June/Sept/Dec) | |
| Contract Size | 0.01 BTC | 0.1 ETH |
| Settlement Coin | BTC | ETH |
| Tick Size | 0.0001 (price < 0.005) / 0.0005 (price ≥ 0.005) |
Key Details:
- Creation Time: New contracts at 08:30 UTC.
- Expiration Time: 08:00 UTC on expiration date.
- Settlement Price: Time-weighted average index price over final hours (200ms snapshots).
- Trading Hours: 24/7.
- Naming Convention: "Underlying-Asset-Expiration-Strike-Type" (e.g., BTC-30Jun2024-50000-Call).
3. OKX Options vs. Futures: Key Differences
| Feature | Options | Futures |
|---|---|---|
| Rights | Holder may exercise; writer must fulfill. | Both parties must fulfill contract. |
| Margin | Writer posts margin; buyer pays premium. | Both post margin. |
| Risk/Reward | Buyer: Limited loss (premium); unlimited gain. Writer: Unlimited loss; limited gain (premium). | Unlimited risk/reward for both. |
FAQs
1. Can I exercise OKX options before expiration?
No. OKX offers European-style options, exercisable only at expiration.
2. How are settlement prices determined?
Settlement uses a time-weighted average of the index price during the final hours before expiration.
3. What’s the minimum contract size for BTC options?
0.01 BTC per contract.
4. Are options available for assets other than BTC/ETH?
Currently, OKX supports only BTC and ETH options.
5. How does moneyness affect option value?
ITM options have intrinsic value; OTM options rely on volatility/time value.