Zeta 101: What’s an Option?

Options and their possibilities

Fundamental functionality

An option is the right, but not the obligation to buy (sell) the underlying at a pre-determined time and price.

Payoff Diagram: Long a Call Option
Payoff Diagram: Long a Put Option

Volatility, time and options

Payoff Diagram: Long a Straddle (Call + Put of same strike & expiry)

What’s next?

Further reading

Zeta (ζ) is the premier under-collateralized DeFi derivatives exchange, providing liquid derivatives trading to individuals and institutions alike.