What Is the Fundamental Difference between a Call Option and a Put Option?
A call option gives the holder the right, but not the obligation, to buy an underlying asset at a specified price (the strike price) on or before a specific date. A put option gives the holder the right, but not the obligation, to sell the underlying asset at the strike price.
Call options profit from an increase in the underlying asset's price, while put options profit from a decrease.
Glossar
Call Option
Entitlement ⎊ The core of a call option within cryptocurrency derivatives represents a contractual right, but not an obligation, to purchase a specified digital asset at a predetermined price, known as the strike price, on or before a specific expiration date.
Put Option
Insurance ⎊ Purchasing a Put Option functions as a form of portfolio insurance, establishing a guaranteed minimum selling price for the underlying crypto asset.