Lesson 3 of 17Beginner6 min
What is a Bitcoin put option?
A put option is the right to sell at a fixed price, the strike, until expiry. On Bitcoin, you buy a put when you expect BTC to fall, or to protect coins you hold. It profits when Bitcoin ends below the strike minus the premium, and the most you lose is the premium.
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Step 1 of 2
You think Bitcoin will go down
A put is the right to sell at the strike. You want the price to go below the strike.
It is the mirror image of a call. Drag the price down and watch the green grow.
Think of it like this. Like insurance on your bike. You pay a premium. If the bike is damaged (the price falls), the policy pays. If nothing happens, the premium is gone and that is fine.
Profit or loss if the price is 81,409(your target)
| Date | Profit / loss |
|---|---|
| On target dateFri, 2 Oct | +6.14profit |
| On expiry dateFri, 2 Oct | +6.14profit |
Move over the graph to read any price; tap or click to set it as the target.
- The 83,500 put is worth 2,091 per BTC (83,500 − 81,409).
- On 0.01 BTC that is 20.91 USDT.
- You paid 14.77 USDT for it.
- Result: +6.14 USDT.
Step 2 of 2
Who buys puts?
People who expect a fall, and people who hold Bitcoin and want a floor under it for a week.
A put with a strike near today's price is expensive, like full-cover insurance. A put far below is cheap, like third-party cover.
Profit or loss if the price is 78,891(your target)
| Date | Profit / loss |
|---|---|
| On target dateFri, 2 Oct | +31.3profit |
| On expiry dateFri, 2 Oct | +31.3profit |
Move over the graph to read any price; tap or click to set it as the target.
- The 83,500 put is worth 4,609 per BTC (83,500 − 78,891).
- On 0.01 BTC that is 46.09 USDT.
- You paid 14.77 USDT for it.
- Result: +31.32 USDT.
You hold 0.01 BTC and are worried about a crash this week. Which right helps?
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Next: In, at, out of the moneyKey terms
- Put option
- The right to sell at the strike price.
- Breakeven
- For a bought put: the strike minus the premium.
- Protective put
- A put bought to insure coins you already hold.
- Long put
- Owning a put: you paid the premium and hold the right.
Questions people ask
Why buy a Bitcoin put?
Either to profit from a fall or to insure your coins. A put rises in value as Bitcoin falls, which offsets losses on the BTC you own.
What is the difference between buying a put and selling a call?
Both gain from a fall. A bought put risks only its premium. A sold call earns a premium but can lose without limit if Bitcoin rises instead.
Are BTC puts expensive?
A put near today's price costs more, like full insurance cover. A put far below is cheaper, like third-party cover, but pays only after a larger fall.
Puts as crypto insurance
If you hold Bitcoin and fear a drop this week, a put sets a floor. Below its strike, the put gains roughly what your coins lose. You pay the premium for that cover whether you need it or not, just like a policy.
Puts as a bet on a fall
A put is also the simplest way to profit from a Bitcoin decline with a fixed risk. Below the breakeven, every dollar of fall is a dollar of gain per Bitcoin at expiry; above it, the loss stops at the premium.
Calls and puts are mirror images
Everything true of a call is true of a put the other way round: the call wants Bitcoin above the strike, the put wants it below. Once one is clear, the other follows.
Written by the Algoclear team · Updated 22 September 2026 · Examples use Bitcoin options on Delta Exchange India.
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