Option Types
Milopt supports CALL and PUT options. Both are American-style (exercise anytime before expiry).
📈 CALL Options (Go Up)
Right to BUY the asset at strike price
When to Use
✅ Bullish on price
✅ Want leveraged upside
✅ Limited risk (only premium)
How It Works
Premium upfront
Right to buy at strike
If price rises above strike → Exercise and profit If price stays below strike → Let expire, lose premium
Example
SOL currently at $140, buy CALL at $150 strike for $7.50 premium
$200
✅ Yes
+$42.50
$180
✅ Yes
+$22.50
$160
✅ Yes
+$2.50
$150
⚠️ Break-even
-$7.50
$140
❌ No
-$7.50
$120
❌ No
-$7.50
Max Loss: $7.50 (premium) Max Gain: Unlimited
📉 PUT Options (Go Down)
Right to SELL the asset at strike price
When to Use
✅ Bearish on price
✅ Want downside protection
✅ Limited risk (only premium)
How It Works
Premium upfront
Right to sell at strike
If price falls below strike → Exercise and profit If price stays above strike → Let expire, lose premium
Example
SOL currently at $160, buy PUT at $150 strike for $7.50 premium
$100
✅ Yes
+$42.50
$120
✅ Yes
+$22.50
$140
✅ Yes
+$2.50
$150
⚠️ Break-even
-$7.50
$160
❌ No
-$7.50
$180
❌ No
-$7.50
Max Loss: $7.50 (premium) Max Gain: $142.50 (if SOL → $0)
🔄 CALL vs PUT
Right
Buy asset
Sell asset
Bullish/Bearish
🟢 Bullish
🔴 Bearish
Profit When
Price ↑
Price ↓
Exercise
Pay strike, get asset
Pay asset, get strike
Max Loss
Premium
Premium
Max Gain
Unlimited
Strike - Premium
🇺🇸 American vs European
Exercise
Anytime before expiry
Only at expiry
Flexibility
🟢 High
🔴 Low
Best For
Volatile crypto
Traditional finance
Why American matters: Capture profits immediately in volatile markets
💰 Strike Price Guide
Higher Strike (CALL):
Lower premium
Lower probability
Higher % return if profitable
Lower Strike (CALL):
Higher premium
Higher probability
Lower % return
Example: SOL at $140
$130
$12
$38
High
$140
$9
$31
Medium
$150
$7.50
$22.50
Lower
$160
$5
$15
Lowest
📊 ITM / OTM
CALL Options
ITM (In-the-Money): Price > Strike → Profitable to exercise
ATM (At-the-Money): Price = Strike → Break-even
OTM (Out-of-the-Money): Price < Strike → Don't exercise
PUT Options
ITM: Price < Strike → Profitable to exercise
ATM: Price = Strike → Break-even
OTM: Price > Strike → Don't exercise
✅ Quick Summary
For Buyers:
✅ Limited downside (only premium)
✅ Leveraged exposure
✅ Flexible exercise timing
⚠️ Lose premium if price doesn't move favorably
For Sellers (MMs):
✅ Earn premiums
✅ Control pricing
⚠️ Must lock collateral
⚠️ Exposed to price movements
📚 Learn More
How It Works → Complete flow
Smart Contracts → Technical details
Glossary → Key terms
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