Bitcoin Options traded are so called european style cash settled options.
“European style” means options on Deribit Exchange cannot be exercised before expiration, but can only be exercised at expiration. On deribit this will happen automatically.
“Cash settled” means when a cash settled option is exercised the writer of the contract pays any profit due to the holder in cash rather than any asset transfer taking place.
The options are priced in BTC, but you can also see the relevant price in USD, using the latest index price to determine the price in USD. Also the platform shows you the Implied Volatility of the options price.
A BTC call option is the right to buy a bitcoin at a certain price, and a put option is the right to sell a bitcoin at a certain price.
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