Options trading industry trends drivers and policy implications
A put option allows the holder to sell the asset for that price on or before the due date. Options are valued according to the difference between the strike price and the current market price of the underlying asset. Complex financial instruments can be built using combinations of buying and selling call and put options with different strike prices and expiration dates.
For example if the price of the underlying asset is above a certain level the call (long) option will pay 100, if it is below it will pay 0. This has further helped the growth of binary platforms as well as mainstream recognition of Bitcoin as a currency.