# Options Trading Strategy(1/n)

By [0xiaorun](https://paragraph.com/@xiaorun-2) · 2024-07-16

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An option is a contract that represents the right to buy or sell an underlying asset at an agreed-upon price for a specific period of time.

Concepts
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*   **Call options**: Calls give the purchaser of the option the right to buy asset from the writer of the option in the future.
    
*   **Put options**: Puts give the purchaser the right to sell asset to the creator of the options contract at a set price in the future.
    
*   **Premium**: All options contracts are sold for a fee called a premium.
    
*   **Strike price**: The contract defines a specific price for the trade, called the strike price.
    
*   **Expiration date**: This deadline, or expiration date, is the final moment the options contract may be executed.
    

Common DeFi Options
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![](https://storage.googleapis.com/papyrus_images/ba198269787077fed8d31c3d2d46b83a10f5d72535efc953096d9777054446a4.png)

### Covered Call Seller

1.  When Settle Price ≦ Strike Price, you gain
    
2.  When Settle Price > Strike Price, you may lose
    

### Put Seller

1.  When Settle Price ≧ Strike Price, you gain
    
2.  When Settle Price < Strike Price, you may lose
    

Structured products
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1.  [@SOFAorgDAO](https://x.com/SOFAorgDAO)
    
2.  [@ThetanutsFi](https://x.com/ThetanutsFi)
    
3.  [@TypusFinance](https://x.com/TypusFinance)

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*Originally published on [0xiaorun](https://paragraph.com/@xiaorun-2/options-trading-strategy-1-n)*