Deribitad — the options exchange
Dalia wants to insure 200 SOL and types 200 in the Deribit quantity box, ten times too much, because one contract is 10 SOL. A shop analogy for the options exchange, cash settlement, how to read bid, mark and ask, who actually owns and serves EU clients on Deribit (no MiCA, no compensation scheme), and why margin matters for sellers.
The DeribitDeribitA crypto options exchange. In our strategy this is where we buy put protection and sell covered calls.Read the lesson → links in this lesson are affiliate links. They cost you nothing extra, but the platform pays us a commission. It helps keep the school free.
Why Deribit?
DeribitDeribit is the largest specialist crypto options exchange: most crypto options trading volume is concentrated here. The exact market share shifts as competitors grow (in 2026 US ETF options overtook DeribitDeribitA crypto options exchange. In our strategy this is where we buy put protection and sell covered calls.Read the lesson → on BTC options open interest), but for SOLSOLSolana's native token. Used to pay gas and as collateral.Read the lesson → options it is still the most liquid venue.
Once you understand this one exchange, managing the entire options side of your strategy yourself — from buying protection to earning premium — becomes possible.
DeribitDeribitA crypto options exchange. In our strategy this is where we buy put protection and sell covered calls.Read the lesson → is like a store where you buy insurance for your crypto. You show up, choose which kind of insurance you want (a PutPutAn option type that grants the right to SELL at a set price. Used as insurance.Read the lesson → or a CallCallAn option type that grants the right to BUY at the strike price. The opposite of a put.Read the lesson →), pay for it — and you're covered.
DeribitDeribitA crypto options exchange. In our strategy this is where we buy put protection and sell covered calls.Read the lesson → is a centralized exchange (CEXCEXCentralized Exchange — a centralized exchange (e.g. Nexo, Kraken, Binance). Requires KYC.Read the lesson →). Your money sits in an exchange account — not in your own wallet. That carries a risk: the exchange could, in theory, fail. So we keep only the insurance budget here, not the whole portfolio.
Who you are actually contracting with
Saying that an exchange could fail stays abstract until you know which legal entity you are actually dealing with. The picture as of September 2026:
An EU resident trading options on DeribitDeribitA crypto options exchange. In our strategy this is where we buy put protection and sell covered calls.Read the lesson → is using a third-country platform outside EU supervision. That does not make the platform bad — it means that if something went wrong, there is effectively no EU legal remedy to turn to.
EU-regulated alternatives for crypto options today: Crypto.com (MiFID licence via Cyprus) and OKX Europe (Malta). Bybit EU does not offer options.
One more practical detail: from 2026-09-09 Coinbase INTX migrates onto DeribitDeribitA crypto options exchange. In our strategy this is where we buy put protection and sell covered calls.Read the lesson →-powered rails, so the interface and order flow may differ from what is described below.
Which options are available?
SOLSOLSolana's native token. Used to pay gas and as collateral.Read the lesson → options are growing quickly in popularity. For our strategy, the liquidity is sufficient.
How does settlement work?
DeribitDeribitA crypto options exchange. In our strategy this is where we buy put protection and sell covered calls.Read the lesson → uses cash settlement:
- The physical asset is never exchanged
- If your PutPutAn option type that grants the right to SELL at a set price. Used as insurance.Read the lesson → is $90 and SOLSOLSolana's native token. Used to pay gas and as collateral.Read the lesson → trades at $60, you simply receive the $30 difference in cash for every SOL you insured
- With 200 SOLSOLSolana's native token. Used to pay gas and as collateral.Read the lesson → of notional protection that's 200 × $30 = $6,000
- No need to hand over any actual SOLSOLSolana's native token. Used to pay gas and as collateral.Read the lesson →
It's simple — you just receive (or pay) the cash difference.
A common beginner mistake. The DeribitDeribitA crypto options exchange. In our strategy this is where we buy put protection and sell covered calls.Read the lesson → SOLSOLSolana's native token. Used to pay gas and as collateral.Read the lesson → option contract size is 10 SOL, not 1. Prices and Greeks in the table are shown per 1 SOL, so the premium for one contract = the displayed price × 10.
Converted for our example: 200 SOLSOLSolana's native token. Used to pay gas and as collateral.Read the lesson → of notional protection = 20 contracts; premium $6.50 per SOLSOLSolana's native token. Used to pay gas and as collateral.Read the lesson → × 200 SOLSOLSolana's native token. Used to pay gas and as collateral.Read the lesson → = $1,300.
The minimum trade is 1 contract, i.e. 10 SOL. The practical consequence: if your portfolio is smaller than ~10 SOLSOLSolana's native token. Used to pay gas and as collateral.Read the lesson →, options protection on DeribitDeribitA crypto options exchange. In our strategy this is where we buy put protection and sell covered calls.Read the lesson → is simply out of reach for you. That is a real size threshold, not a detail.
Figures as of 2026-09 (DeribitDeribitA crypto options exchange. In our strategy this is where we buy put protection and sell covered calls.Read the lesson → API); check the contract specification on the exchange before any trade.
What do you see in the options table?
When you open the DeribitDeribitA crypto options exchange. In our strategy this is where we buy put protection and sell covered calls.Read the lesson → options page, you see these columns:
| Column | What it shows | Example |
|---|---|---|
| Mark Price | The option's current price | $6.50 per 1 SOLSOLSolana's native token. Used to pay gas and as collateral.Read the lesson → (contract = 10 SOLSOLSolana's native token. Used to pay gas and as collateral.Read the lesson → → $65) |
| IV (implied volatility) | The market's expected volatility, in percent | 74% in this example; in 2026-09 SOLSOLSolana's native token. Used to pay gas and as collateral.Read the lesson → IVIVImplied Volatility — the volatility the market expects. SOL IV is roughly 70-80%.Read the lesson → was ~50% |
| Delta | How much the option's value changes when SOLSOLSolana's native token. Used to pay gas and as collateral.Read the lesson → rises $1 | -0.42 |
| Theta | How much value it loses per day | -$0.0163 per 1 SOLSOLSolana's native token. Used to pay gas and as collateral.Read the lesson → |
| Bid / Ask | The buy and sell prices | $6.40 / $6.60 |
| Volume | How many trades happened today | 150 |
| Open Interest | How many open positions exist | 2,400 |
In the example — our strategy's Long PutPutAn option type that grants the right to SELL at a set price. Used as insurance.Read the lesson → $90. SOLSOLSolana's native token. Used to pay gas and as collateral.Read the lesson → options are quoted in dollars (BTC options are quoted in bitcoin itself).
In the DeribitDeribitA crypto options exchange. In our strategy this is where we buy put protection and sell covered calls.Read the lesson → table, delta and theta are per-SOLSOLSolana's native token. Used to pay gas and as collateral.Read the lesson → figures, not per contract. To get the position-level number, multiply by the SOLSOLSolana's native token. Used to pay gas and as collateral.Read the lesson → notional: 200 SOLSOLSolana's native token. Used to pay gas and as collateral.Read the lesson → × (-0.42) = -84 delta, 200 × (-$0.0163) ≈ -$3.25 per day. These are the position-level numbers used in the other lesson examples.
In the order ticket the quantity is entered in contracts, and one contract = 10 SOLSOLSolana's native token. Used to pay gas and as collateral.Read the lesson →. So for 200 SOLSOLSolana's native token. Used to pay gas and as collateral.Read the lesson → of notional you type 20, not 200 — this is where people are wrong by a factor of ten.
Bid/Ask spread — the gap between the buy and sell price. The smaller it is, the better for you. In the example: ($6.60 − $6.40) / $6.50 ≈ 3%.
Account structure
Your DeribitDeribitA crypto options exchange. In our strategy this is where we buy put protection and sell covered calls.Read the lesson → account has these elements:
| Element | What it means, in plain terms |
|---|---|
| Equity | Your account's total value |
| Initial Margin | How much is needed to open a new position |
| Maintenance Margin | How much you need to keep the position from being closed |
| Available Balance | How much free cash you can use |
When you sell options (going short), DeribitDeribitA crypto options exchange. In our strategy this is where we buy put protection and sell covered calls.Read the lesson → requires collateral. In our strategy, the insurance budget (~1/3 of the borrowed USDCUSDCA USD stablecoin issued by Circle. Regulated, audited monthly. Our primary stablecoin and loan asset in the Kamino/Aave strategies.Read the lesson →) covers these requirements.
What happens if the margin runs short
This is the most important practical risk of short positions, and it is usually skipped. DeribitDeribitA crypto options exchange. In our strategy this is where we buy put protection and sell covered calls.Read the lesson → options are European-style and cash-settled, so there is no early assignment — but you cannot conclude from that that nothing can happen before expiry.
The margin requirement on the short legs grows for two reasons at once:
- the price falls — your Short PutPutAn option type that grants the right to SELL at a set price. Used as insurance.Read the lesson → $65 and $60 move closer to their strikes;
- IV rises — and in a sell-off IVIVImplied Volatility — the volatility the market expects. SOL IV is roughly 70-80%.Read the lesson → always spikes, which on its own raises the required collateral even if the price has not reached the strike yet.
The worst part is that these coincide: SOLSOLSolana's native token. Used to pay gas and as collateral.Read the lesson → falls → your KaminoKaminoSolana lending protocol. In our strategy: SOL collateral to a USDC loan.Read the lesson → LTVLTVLoan-to-Value — the ratio of debt to collateral value. LTV 30% is considered safe. LTV 83%+ triggers liquidation.Read the lesson → rises → the DeribitDeribitA crypto options exchange. In our strategy this is where we buy put protection and sell covered calls.Read the lesson → margin requirement grows. All three press on the same USDCUSDCA USD stablecoin issued by Circle. Regulated, audited monthly. Our primary stablecoin and loan asset in the Kamino/Aave strategies.Read the lesson → balance on the same day.
If the margin runs short, DeribitDeribitA crypto options exchange. In our strategy this is where we buy put protection and sell covered calls.Read the lesson → closes your position by force, before expiry, and since 2026-08-01 charges a 1% liquidation fee (it applies to all products).
The worst part of this scenario: it happens precisely during a drop, when the protection is needed most. Lose the short legs and the Long PutPutAn option type that grants the right to SELL at a set price. Used as insurance.Read the lesson → loses its funding, and the structure of the strategy falls apart.
Practical rule: keep a margin buffer on DeribitDeribitA crypto options exchange. In our strategy this is where we buy put protection and sell covered calls.Read the lesson → at least 2x larger than the stated minimum requirement, and check your Available Balance before every roll. The exact requirement for the Short PutPutAn option type that grants the right to SELL at a set price. Used as insurance.Read the lesson → $65 (100 SOLSOLSolana's native token. Used to pay gas and as collateral.Read the lesson →) and Short PutPutAn option type that grants the right to SELL at a set price. Used as insurance.Read the lesson → $60 (100 SOLSOLSolana's native token. Used to pay gas and as collateral.Read the lesson →) legs depends on the strike, the expiry and the current IVIVImplied Volatility — the volatility the market expects. SOL IV is roughly 70-80%.Read the lesson → — it is not a fixed number, so always check it in the DeribitDeribitA crypto options exchange. In our strategy this is where we buy put protection and sell covered calls.Read the lesson → interface before opening the position.
Your first trade — step by step
Here's what the process looks like technically on the exchange. This is an explanation, not a prompt to open a position: every options exercise in this course stays paper-only, and the decision to trade is entirely yours.
- Sign up — create an account at deribit.com, you'll go through identity verification
- Transfer funds — send USDCUSDCA USD stablecoin issued by Circle. Regulated, audited monthly. Our primary stablecoin and loan asset in the Kamino/Aave strategies.Read the lesson → (or BTC) to your DeribitDeribitA crypto options exchange. In our strategy this is where we buy put protection and sell covered calls.Read the lesson → account
- Go to options — select the "SOLSOLSolana's native token. Used to pay gas and as collateral.Read the lesson → OptionsOptionA financial contract that grants the right (but not the obligation) to buy or sell at a set price.Read the lesson →" menu
- Pick a date — choose the longest SOLSOLSolana's native token. Used to pay gas and as collateral.Read the lesson → expiry actually available (in practice a quarterly date). See the warning below: a 120-day date may simply not exist
- Find the strike — locate the price you want in the table
- Pick the type — the CallCallAn option type that grants the right to BUY at the strike price. The opposite of a put.Read the lesson → or PutPutAn option type that grants the right to SELL at a set price. Used as insurance.Read the lesson → column
- Open the order — choose Buy or Sell, set the quantity in contracts (1 contract = 10 SOLSOLSolana's native token. Used to pay gas and as collateral.Read the lesson →)
- Limit order — set the price between bid and ask (never use a market order)
- Confirm — review and confirm the trade
This whole module's cycle is built on ~120-day options, rolled with ~30 days left. In reality the SOLSOLSolana's native token. Used to pay gas and as collateral.Read the lesson → expiry list on DeribitDeribitA crypto options exchange. In our strategy this is where we buy put protection and sell covered calls.Read the lesson → is considerably shorter than for BTC or ETH.
As of 2026-09-05 only 7 SOL expiry dates are traded, and the furthest of them is about 111 days out. There is a large gap between the nearest monthly and the furthest quarterly date, so an exact 120-day contract may simply not exist.
What to do: pick the longest date actually available, and fit your roll plan to the real list — check it before every roll, because the dates change. 120 days is the strategy's target, not an option guaranteed by the exchange.
Order types
| Order type | When to use it | Risk |
|---|---|---|
| Limit (set-price order) | Always (recommended) | May have to wait, but you control the price |
| Market (current-price order) | Only for very urgent cases | Could buy at too high a price |
| Stop-Limit (automatic stop order) | Automatic position closing | May not trigger during a sharp move |
In the options market, the bid/ask spread can run 3-5%. A market order buys at the most expensive price — you'd lose 3-5% instantly. Always use a limit order at the midpoint price and wait patiently.
How Deribit is used in our strategy
In the portfolio, the collateral we hold is 126 SOL. The numbers in the options rows (200, 100, 50) are the SOL notional, not the portfolio size and not the contract count. In contracts those are 20, 10 and 5 respectively (1 contract = 10 SOLSOLSolana's native token. Used to pay gas and as collateral.Read the lesson →). So whenever you calculate P&LP&LProfit & Loss — used to evaluate strategy results.Read the lesson →, always state which base you're using: portfolio value is calculated from 126 SOLSOLSolana's native token. Used to pay gas and as collateral.Read the lesson →, while an option's payout is calculated from that option's own SOLSOLSolana's native token. Used to pay gas and as collateral.Read the lesson → notional.
What it costs:
- Paid for insurance: ~$1,300
- Received from sales: $500 + $300 + $100 = ~$900
- Net cost: ~$400 over the 120-day cycle (the net cost of the Put SpreadPut SpreadLong put + short put. Cheaper protection than a plain put, but with limited coverage.Read the lesson → piece alone is $1,300 − $500 − $300 = $500)
Planned Deribit API integration
Our platform (in development) will pull data from DeribitDeribitA crypto options exchange. In our strategy this is where we buy put protection and sell covered calls.Read the lesson → automatically:
- OptionOptionA financial contract that grants the right (but not the obligation) to buy or sell at a set price.Read the lesson → prices and Greeks in real time
- Your list of open positions
- Account status
Once it launches, nothing will need to be calculated by hand — the platform will keep everything updated itself. Until then, you calculate it yourself.
Next step: now let's take a closer look at how a PutPutAn option type that grants the right to SELL at a set price. Used as insurance.Read the lesson → option works as portfolio insurance.
Before you ever place a real trade, you need to be able to judge liquidity. This paper exercise (~15 min) teaches you to read the bid/ask spread and Open Interest — no signup, no purchases.
We're looking and calculating, NOT trading. No signup, no transfers — this is a learning exercise.
This is learning, not investing — use only small amounts you treat as tuition.
You just learned to read an options table and judge spread cost — a skill most crypto users never pick up.