In the crypto market, the days of waiting for 10x returns on a single coin and passively earning profits are dwindling. Returns are increasingly reliant on technical skills and execution. This is where the value of non-linear instruments like options comes in. Let's discuss how to play OKX's newly launched simplified options: 1/ European options, four directions: buy call, buy put, sell call, sell put 2/ Minimum order is 0.01 contracts, corresponding to 1 tokenized share; 1 contract = 100 shares 3/ Premiums and cash settlements are both in USDT, a fixed price with no additional fees. 4/ Settlement occurs at 16:00 (UTC+8) on the expiration date, with the settlement price being the average index price from 15:30 to 16:00 on that day. 5/ The seller is fully guaranteed, in a separate account, with no maintenance margin and no risk of liquidation. For example, xNVDA on the page, currently priced at 187.68, with the nearest expiration date being 11/09. 6/ Example 1: Buy a call A call option with a strike price of 190, quoted... 1.34, buy 1 contract at cost 134 U Break-even point: 191.34 Expiration settlement price: 195, cash settlement (195−190)×100 = 500 U, net profit after deducting premium: 366 U Expiration settlement price: 193, net profit: 166 U Expiration price below 190, option becomes worthless, loss of 134 U, this is the maximum loss 7/ Example 2, sell put to receive delivery A put option with a strike price of 185, sell 1 contract to receive 58 U premium, frozen 18,500 U Expiration price above 185, option becomes invalid, free 58 U Expiration price 180, assigned to buy 100 shares at 185, unrealized loss of 500 U, net loss after deducting premium: 442 U, cost of holding shares: 184.42 Expiration 170, unrealized loss of 1,500 USDT, net loss after deducting premium of 1,442 USDT 8/ Example 3: Selling a covered call with a holding position Holding 100 shares of xNVDA, valued at 18,768 USDT, selling one call option with a strike price of 192, receiving 29 USDT, freezing 100 shares. Expiring below 192, getting 29 USDT for free, shares still held. Expiring at 200, settled at 192, the potential profit of 800 USDT is lost, resulting in a loss of 771 USDT including the premium. 9/ Risks can be summarized in two sentences: The buyer at most loses the premium, but going to zero is common. The seller earns the premium and bears the obligation to take delivery or receive the goods at the strike price; regardless of how much the price moves against them, they must fulfill the contract. 10/ The initial offering consists of tokenized stocks: xNVDA, xSNDK, xMU, xCRCL, xMSTR, xNBIS, xSPCX, and xGOOGL.