How Does a Miner Use a Put Option to Protect the Value of Their Mined Coins?

A miner uses a put option to protect the value of their inventory of mined coins without locking in a sale price. A put option gives the miner the right , but not the obligation, to sell their coins at a specified strike price on or before the expiration date.

If the market price falls below the strike price, the miner can exercise the option, guaranteeing a minimum sale price. If the price rises, they let the option expire and sell at the higher market price.