You collect a USD premium at time of trade. You are obligated to buy bitcoin at the strike price if you're assigned.
You need USD available in your account to sell put options. See Fund Your Account.
- Click the Bid Price
- Enter # of Contracts & Price
- Click Sell to confirm your order & lock USD collateral
- Confirm Sell Order & Receive USD Premium
Contracts: the number of contracts you want to sell. Minimum quantity = 1.
If the long holder exercises their option on the expiration date, you will be buying 0.01 BTC at the strike price for each contract.
Price: the price you receive for the put option. Options prices are quoted in terms of 1 bitcoin.
Underlying: the amount of BTC you may be buying at expiration
Premium: the total dollar amount you receive at time of trade
Break Even = strike price - premium
Max Loss = strike price - premium
Max Gain = premium