Ether options let a buyer pay a premium for exposure to a price move over a limited period. The examples below explain a call and a put on a named futures contract, including the premium, profit, loss and breakeven.
How Ether options work
The example uses one standard CME option on Ether futures representing 50 ETH. The underlying is an Ether future, not fund shares or an Ether balance in a wallet.
The example trade
Assume the underlying starts at 3,000 USD per ETH. One option has a strike of 3,000, a premium of 100 and a multiplier of 50. The total premium is USD 5,000. 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 Ether calls
You buy the call because you expect the underlying price to rise. At 3,300 USD per ETH, the right at the strike is worth (3,300 − 3,000) × 50 = USD 15,000. After the premium, your profit is USD 10,000.
At 3,000 or below, the call expires without intrinsic value and loses its USD 5,000 premium. Its expiration breakeven is 3,100 USD per ETH. At 3,050, the price has risen but the trade still loses USD 2,500.
Buying Ether puts
If you expect a fall instead, the put costs USD 5,000 in this example. At 2,700 USD per ETH, it is worth (3,000 − 2,700) × 50 = USD 15,000. Your profit is USD 10,000 after the premium.
At 3,000 or above, the put loses its entire premium. Its expiration breakeven is 2,900 USD per ETH. A smaller fall to 2,950 still leaves a loss of USD 2,500.
Before expiration
You can sell an option to close when a market is available. Its resale value also depends on time remaining and implied volatility, so the expiration breakevens do not determine every earlier trading result.
The purchased option can lose its full premium. Exercise may create a separate position or funding obligation. Selling an uncovered option can produce losses larger than the premium received.
Ether price chart
Coinbase spot prices are market context. They are not the CME futures price or the official settlement reference used by the option.
Types of Ether options
- Options on Ether Futures — the standard CME contract and its exercise mechanics
- Micro Ether Options — smaller futures exposure and premium calculations
- Ether ETF Options — options on fund shares
