This lesson explains Bitcoin Friday Options, including the contract size and what happens to a purchased call or put. Prices in the examples are hypothetical.
Identify the product, not just the weekday
The underlying contract family is Bitcoin Friday futures, often abbreviated BFF. The option’s reference and settlement terms belong to that family. An option expiring on a Friday is not automatically a BFF option.
These options use European-style exercise and settle financially against a defined fixing. They do not deliver a futures position on exercise. The fixing follows the relevant series’ rules; it is not simply any Bitcoin price seen on a screen.
The example trade
Assume the underlying starts at 100,000 USD per BTC. One option has a strike of 100,000, a premium of 1,000 and a multiplier of 0.02. The total premium is USD 20. Prices and premiums are hypothetical; the call and put use equal premiums to make the comparison easy.
The following results are at expiration, before fees. If exercise creates another position, the calculations assume that position is immediately closed at the stated value.
Buying Bitcoin Friday calls
You buy the call because you expect the underlying price to rise. At 103,000 USD per BTC, the right at the strike is worth (103,000 − 100,000) × 0.02 = USD 60. After the premium, your profit is USD 40.
At 100,000 or below, the call expires without intrinsic value and loses its USD 20 premium. Its expiration breakeven is 101,000 USD per BTC. At 100,500, the price has risen but the trade still loses USD 10.
Buying Bitcoin Friday puts
If you expect a fall instead, the put costs USD 20 in this example. At 97,000 USD per BTC, it is worth (100,000 − 97,000) × 0.02 = USD 60. Your profit is USD 40 after the premium.
At 100,000 or above, the put loses its entire premium. Its expiration breakeven is 99,000 USD per BTC. A smaller fall to 99,500 still leaves a loss of USD 10.
How it differs from Micro Bitcoin options
A Micro Bitcoin option references 0.1 BTC of futures exposure and can create a futures position. BFF options use 0.02 BTC and financial settlement. Size and settlement both matter; these are not interchangeable labels for the same contract.
Compare Micro Bitcoin Options for the corresponding worked example.
Short timeframes and expiry risk
With little time remaining, an option’s value can change quickly near its strike. A small premium can still be lost in full, and trading costs can represent a large share of it. A short-dated call does not benefit from a rally that occurs after it expires.
Check the expiry time, fixing definition and executable spread for the chosen series. Financial settlement avoids a delivered position but does not remove market risk or a short option’s payment obligation.
