Beginner7 min readfundamentals

How options work on Deribit

Deribit is the world's largest crypto options exchange. Understand contracts, expiries, settlement, and how to read the order book.

Why Deribit?

Deribit handles over 90% of global crypto options volume. It offers BTC and ETH options with weekly, monthly, and quarterly expiries — giving you the flexibility to run short-term income strategies or longer-dated positions.

All contracts are margined and settled in crypto (BTC or ETH), not USD. This is important: your premium and collateral are denominated in the underlying asset.

Contract specifications

Each BTC options contract represents 1 BTC. Each ETH contract represents 1 ETH. Premiums are quoted in BTC/ETH respectively, though the platform shows USD equivalents.

Expiries occur at 08:00 UTC on the expiry date. Settlement is based on the Deribit BTC Index — a composite of major exchange prices — not the last traded price.

Reading the option chain

The option chain shows all available strikes for a given expiry. Each row shows the bid, ask, last price, implied volatility (IV), delta, and open interest for both calls and puts.

For covered calls, focus on the call side. Look for strikes 3–8% out-of-the-money with 21–45 days to expiry — this is the sweet spot for premium income vs. assignment risk.

Key takeaways

  • Deribit is the dominant crypto options exchange — 90%+ of global volume
  • Contracts are settled in crypto, not USD — factor this into your position sizing
  • Focus on 21–45 DTE calls, 3–8% OTM for the best income-to-risk ratio
How The Pros

Learn to generate consistent income from your crypto holdings using professional-grade covered call strategies — powered by live Deribit data.

Risk Disclaimer: Trading and investing in cryptocurrencies and derivatives involves substantial risk of loss and is not suitable for all investors. Covered calls and other options strategies can result in significant losses. Past performance is not indicative of future results. How The Pros provides educational content only and does not constitute financial advice. Always consult a qualified financial advisor before making investment decisions.

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