Options desk

Crypto options are financial derivatives that give the buyer the right, but not the obligation, to buy or sell a specific cryptocurrency at a predetermined price on or before a certain date. Like options in traditional financial markets, crypto options come in two types: calls and puts.

A call option allows the buyer to purchase an underlying cryptocurrency at a set price within a specific time frame. A put option gives the buyer the right to sell at a set price. These options are used for hedging risks, speculating on price movements, and strategic investment planning in the volatile cryptocurrency market.

Crypto options are commonly traded by institutions, funds, market participants, corporate treasuries, and sophisticated investors looking to manage risk or gain more flexible market exposure. These participants often use options to hedge existing positions, structure volatility strategies, protect against downside risk, or generate yield from market activity.

Options are particularly valuable for participants wanting tailored exposure to digital assets without directly trading spot markets. They’re also widely used by traders and institutions looking to navigate changing market conditions with more precision and capital efficiency.

Crypto options can be used in various ways depending on the investment strategy and risk tolerance. When hedging, holders can use options to protect against price drops in cryptocurrencies they own. For example, buying put options can help offset potential losses in crypto holdings.

When speculating, holders can use options to bet on the future price movement of a cryptocurrency without actually owning it. This approach can potentially lead to high returns with a lower initial investment compared to buying the cryptocurrency outright. Additionally, crypto options are a popular tool for income generation by writing (selling) options and collecting the premium from buyers.

Keyrock specialises in managing volatility and liquidity: an expertise we carry through our options desk. With a team that brings 50+ years of cumulative experience across both traditional and crypto volatility products, we offer you industry-leading option products.

Along with our sophisticated algorithmic trading technology, our options solutions are designed to match the most intricate investment strategies, helping you diversify your upside, hedge your downside, and earn revenue from volatility.

With bespoke strikes and maturities, our wide coverage grants investors and institutions exposure to an inclusive list of digital assets, from 20+ standardised tokens to exotics on demand, allowing you to customise portfolios to your specific requirements.