cmETH is a liquid restaking token that represents staked ETH within Mantle Network’s ecosystem. Learn more about how you can mint cmETH on Bybit here.

Liquid staking has become an essential tool for ETH holders looking to earn passive income without sacrificing liquidity. But now, with 

 solutions like cmETH, users can go beyond traditional rewards by earning layered yields through protocols such as EigenLayer.

In this guide, we’ll walk through everything you need to know about cmETH, how it compares with mETH, what rewards to expect and how to mint it easily on Bybit’s On-Chain Earn platform — especially during the 30-day, limited-time bonus event running from Jun 10, 2025 through Jul 10, 2025 in partnership with Mantle Network and EigenLayer.

EigenLayer is a restaking protocol built on Ethereum that allows users to reuse their staked ETH (or liquid staking tokens, such as mETH, to secure additional networks and decentralized services called Actively Validated Services (AVS).

At its core, EigenLayer allows users to “restake” ETH or liquid staking tokens (LSTs) like mETH that are already staked for Ethereum's 

 (PoS) consensus. Instead of just earning base staking rewards, users can opt in to restake those same assets to support other decentralized services, including 

This creates a powerful shared security model, whereby multiple protocols can leverage Ethereum’s validator set without having to bootstrap their own trust networks from scratch. For users, it means earning additional incentives (often in the form of native tokens like EIGEN) — on top of their regular staking rewards — simply by opting in to restake.

EigenLayer is quickly becoming a foundational layer for Ethereum’s modular future, attracting widespread attention from both developers and stakers. As more AVS launch on EigenLayer, the opportunities for restakers continue to grow.

Following is a simple breakdown of how EigenLayer works.

Users who have staked ETH (either directly or via LSTs) can opt in to restake their assets on EigenLayer. This means they're extending the security of their stake to other networks, not just Ethereum.

AVS are services that tap into EigenLayer’s pooled security. These can include oracle networks, cross-chain bridges, data availability layers, rollup sequencers and more. Restakers delegate their stakes to operators running these services, thereby helping to secure operations.

Because restakers are now providing security to multiple protocols, misbehavior (e.g., downtime or dishonest validation) on any AVS can trigger slashing of restaked assets. This ensures accountability and maintains security across all layers.

When you mint cmETH on Bybit, your ETH or mETH is automatically routed through Mantle Network and restaked on EigenLayer. This gives you exposure to EigenLayer’s AVS ecosystem and allows you to earn dual rewards (Ethereum staking yield and bonus AVS incentives) in a single step, without needing to restake manually.

 is a liquid restaking token that represents staked ETH within the 

 ecosystem, enabling holders to earn rewards from 

 staking and additional restaking protocols, such as 

. It’s designed to provide users with a seamless staking experience, and combines the benefits of Ethereum's 

 (PoS) rewards with additional yields from restaking strategies.

While both cmETH and mETH are integral to the Mantle Network staking ecosystem, they serve distinct purposes:

In essence, cmETH offers a multi-layered yield approach, combining base staking rewards with additional incentives from restaking activities.

Staking cmETH presents several advantages for users seeking to maximize their ETH holdings:

During the limited-time bonus event running from Jun 10, 2025 through Jul 10, 2025, minting cmETH on Bybit will entitle users to:

Please note that only new deposits and staking actions made during the event window are eligible for bonus rewards. A 24-hour minimum holding snapshot is used to calculate eligibility. In addition, bonus rewards are only available for cmETH minted during the event window, and they require a 41-day holding period in order to qualify for full distribution.

How to earn additional interest rate bonus

When you mint cmETH during the event period (Jun 10, 2025 through Jul 10, 2025), the bonus interest is automatically applied. The total APR for cmETH is 3.43%, which includes both the base Ethereum staking yield and additional bonus yield from EigenLayer in the form of EIGEN or partner tokens. There’s no need to claim anything manually. Once your ETH or mETH is staked, your rewards start accumulating immediately.

Please note that the interest will stop accumulating once you initiate redemption, and your rewards will be finalized based on your average holdings over the 41-day lock-in period. These rewards will be unlocked and distributed automatically on the 41st day of the event.

While the event primarily focuses on staking bonuses, Bybit is also offering an additional referral perk when you send this article to a friend and invite them to participate in this limited-time event with your referral link. Upon successful referral, you’ll receive an additional airdrop of EIGEN or USDT, which will be unlocked on the 41st day of the event.

There are two ways you can mint cmETH on Bybit: either through ETH or mETH. To get started, you’ll first need to create a Bybit account, then fund it with cryptocurrency and obtain ETH or mETH, which can be purchased on the Bybit Spot trading platform. Once you have ETH or mETH in your Bybit account, you may proceed with the following steps.

: On the Bybit homepage, hover your cursor over the 

button. Alternatively, you can also enter 

in the search field to locate the token. 

: Input the amount of ETH you would like to stake, or the amount of cmETH you would like to receive. Confirm the details and click on 

Once you’ve successfully staked ETH for cmETH, you may head to the 

: Input the amount of cmETH you would like to exchange, or the ETH you would like to receive. Confirm the details and click on 

cmETH earns from Ethereum staking rewards via mETH, and additional yield through restaking on EigenLayer. During the event, users also receive bonus tokens, such as EIGEN and OWN.

You can redeem cmETH through the Bybit On-Chain Earn platform. Redemption takes T+9 days, after which your ETH or mETH will be returned to your account. However, if you redeem before the 41-day lock-in period ends, you will forfeit the pending bonus rewards (e.g., EIGEN airdrops).

Yes. Minting cmETH on Bybit is secure. The platform integrates restaking protocols like EigenLayer in a fully custodial environment, meaning Bybit handles the back-end staking and restaking processes on your behalf. Users retain full visibility over their funds, with real-time reward tracking, secure redemption and no need for manual delegation or validator setup.

The interest rate bonus is automatically applied upon successful minting of cmETH. Please note that the interest will no longer accumulate upon cmETH redemption.

Mint cmETH during the event period, or refer a friend using your link. Airdrops (EIGEN or USDT) will unlock on day 41 of the event.

Minting cmETH on Bybit is more than just another staking opportunity — it’s a gateway into the future of ETH restaking. With the Mantle x EigenLayer x Bybit collaboration, users receive access to dual rewards, event-exclusive bonuses and a seamless interface to track and grow their crypto holdings. 

Beginner

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How to mint cmETH on Bybit

Plasma has officially partnered with Aave, the largest DeFi liquidity protocol, to expand access to lending and borrowing for underserved users and institutions worldwide. 

The S&P 500 dipped 0.27% as investors awaited producer inflation data and weighed easing rate pressure and a US-China trade deal. Gold climbed to $3,363 as cooling US inflation raised Fed rate cut hopes, while weak dollar and US-China trade uncertainty supported prices. The Coindesk Indices, which tracks the broader crypto market, fell 2.01%, with Bitcoin down 0.71% and Ether up 1.49%, in the past 24 hours. Trade these markets and more with up to 500x leverage on Bybit MT5 using this 

Today’s top performer is KAIA, up 5.2% after Kaia announced plans for a won-pegged stablecoin amid rising crypto momentum in South Korea.

Kaia (KAIA), launched in August 2024, is a Layer 1 blockchain formed from the merger of Klaytn and Finschia, backed by Kakao and LINE. With over 280M users, it aims to lead Asia’s web3 push, offering fast, low-cost, EVM-compatible infrastructure for RWAs, DeFi, and gaming. Kaia plans to 

 a won-pegged stablecoin following President Lee’s crypto-friendly inauguration, boosting optimism in South Korea’s digital asset space. Backed by Kakao, Kaia’s move aligns with legislative support for private stablecoin innovation, while payment stocks rallied in anticipation.

Check out the latest prices, charts, and data of 

, the largest DeFi liquidity protocol, to expand access to lending and borrowing for underserved users and institutions worldwide. The collaboration includes support from key players like Lemiscate, Stani Kulechov, Avara, Aave Chan, and Horizon. Aave will be a day-one launch partner on Plasma, powering permissionless financial services and enabling users to earn real yield through USD₮ infrastructure. This partnership aims to bring foundational financial tools to billions without relying on traditional banks.

Yesterday, BTC spot ETFs saw $164.6 million in net inflows, all from non-GBTC funds, while GBTC recorded no activity.

, and to qualify, users must use all their earned points to vote on memes—unvoted points won’t count toward rewards. The airdrop tab is already visible on their site, so now is the time to act. Earn points through daily check-ins, spins, and tasks, then vote with all of them on the “Meme” page to ensure eligibility before the drop goes live.

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Plasma partners with Aave to expand global access to DeFi lending and yield

ao Computer brings hyper-parallel, decentralized computing to Arweave, transforming it from storage-only to a scalable, full-stack Web3 platform.

 (AR) is among the crypto industry's oldest and most prominent distributed storage projects. Offering a unique decentralized storage model called the blockweave, the project has been at the forefront of driving the crypto revolution over the past seven years. In early 2025, the Arweave project launched the mainnet of its decentralized computing system — ao Computer (AO). This signified the beginning of a new era for the veteran of 

 storage. With the launch of ao Computer, the project adds highly scalable computational capacity to its well-regarded storage platform. 

ao Computer features a hyper parallel processing function that allows it to handle numerous client requests while independent execution paths are running simultaneously. This creates opportunities for scalability at unprecedented levels. Using a unique system based on messages that go through processing by three key process units, ao Computer features an architectural design that’s no longer restricted by throughput capacity. In addition, messages are stored permanently and immutably on Arweave's famed storage platform. In essence, ao Computer has turned Arweave from a massive decentralized hard drive into a full-fledged processing environment. 

In this article, we'll examine this innovative project that has the potential to redefine the way businesses and individuals use Arweave.

 (AO) is a decentralized, trustless computing system based on the Arweave distributed storage platform that uses hyper parallel processing to achieve unprecedented scalability. 

The system processes all execution requests and data using standardized messages that interact with processes on the platform, creating an interconnected environment. The most critical innovation that ao Computer offers is hyper parallel processing, whereby all processes and interactions are handled independently and concurrently. Many software developers would call this mode of processing multi-threaded.

Using trust-minimized, decentralized parallel processing, ao Computer creates a computing environment in which scalability and capacity are no longer restrained. The messages that the protocol handles are stored on Arweave, which essentially acts as an immutable hard drive for the ao Computer’s processing engine.

Arweave itself is well-known in the blockchain industry for its unique and highly efficient distributed storage solution. All the data on Arweave is immutably stored in a decentralized fashion, with the network nodes incentivized to provide permanent storage. Unlike standard 

, in which each block is linked to the previous one, Arweave uses a linkage model called 

, which links each block to the previous one as well as to a random recall block to enable 

 (PoA) — a consensus mechanism that requires miners to prove they can access old data. In this way, the blockweave model makes decentralized data storage more affordable, scalable and secure.

Before the introduction of ao Computer, Arweave had been used mostly for passive storage, albeit cheap, permanent and highly secure. The arrival of ao Computer adds significant computational capacity to Arweave, potentially turning it into a hotspot for 

While Arweave is the overall platform’s hard drive, ao Computer is its operating system. By integrating ao Computer, Arweave essentially becomes a full-stack decentralized computing environment, in certain ways similar to a platform like the 

In fact, its interconnected web of processes and messages makes ao Computer a unified hyper-parallel computer capable of handling a huge number of client requests simultaneously.

While Arweave, launched back in 2018, is among the oldest decentralized networks in the crypto space, ao Computer is a recent innovation: the unified computing environment’s 

 debuted in February 2025. Both Arweave and ao Computer were founded by technology entrepreneur Sam Williams.

ao Computer’s overall architecture involves three main data processing units — the Messenger Unit (MU), Scheduler Unit (SU) and Compute Unit (CU) — working together to process user messages and return finalized results. The user (this could be an application, service or even an AI agent initiating some computing request) sends a message that’s passed to the MU, which then processes and forwards it to the SU. Then, the SU stores the messages on Arweave and schedules them for processing by the CU, which runs computations and provides the final output messages back to the MU. Finally, the MU delivers the output messages back to the user. The image below shows the overall architectural setup of this process.

Processes are ao Computer network modules that are responsible for processing messages of all kinds on the platform, including relevant messages from users and system-generated messages, with final results delivered back to the user. The key role of processes is to accept an input message and return a finalized result. ao processes maintain independence from each other, which enables them to execute tasks in a hyper-parallelized mode, offering ao extremely scalable computing power to its user community.

Messages are the primary data units on the ao Computer platform. They’re used by processes to execute user requests, pass data between processes and return results to users. Messages connect processes into a unified web, similar to the way in which hyperlinks on the internet connect websites.

Reproducible message logs stored on Arweave allow ao's node network participants to verify all transaction activity in a 

 data item format. Message processing based on the standardized format ensures that the messages are interoperable and can leverage existing 

MUs are the platform units responsible for accepting, routing and delivering messages. Processes create messages that are passed between different unit layers by MUs. In essence, MUs represent ao Computer's message-routing layer.

SUs ensure that messages are properly ordered and organized for further processing by appropriate computing units. While MUs are the platform's message-passing layer, SUs represent the message-ordering layer. SUs also store the messages and interaction logs on the Arweave network.

CUs are responsible for the actual computations needed to execute corresponding dynamic operations requested by messages. They provide the results of computations back to the MUs for final delivery to the client. The network's computing process status depends upon the work done by the CUs.

Parallel processing, a key feature of ao, offers extreme scalability. Processes involved in handling user requests are all executed in an independent, parallel way, creating a “hyper parallelized” system with scalability features akin to sophisticated Web 2.0 traditional computing environments. 

The parallel processing capacity of ao is starkly different from the typical single-threaded format of transaction execution used by 

ao Computer is based on a modular design in which each unit handles separate functions. Additionally, it features a high degree of composability, so that a different self-contained process may represent each function of the user app. For instance, a login module for a gaming app can be handled by one ao process, while another process may be responsible for in-game purchases. These processes can be customized or replaced, based on client requirements, making the entire process stack fully composable. 

To further improve the platform's modularity and customizability, ao has introduced the 

 protocol, which supports running ao processes via the standard and well-familiar HTTP messaging protocol. AO-Core also allows these processes to securely prove and verify each step of their state changes within HTTP messages.

, allows nodes to choose the devices they would like to run. Each device is essentially a modular blockchain service. As such, HyperBEAM and its underlying AO-Core protocol further boost the platform's modularity by allowing different nodes to flexibly offer separate services.

ao Computer integrates AI algorithms, including large language models (LLMs), that can execute their functions and output results based on decentralized, trustless computations. For instance, when a user app runs its predictive AI model by inputting some crypto price data and receives the corresponding financial value forecasts, the app's operator can be certain that all the data has been processed trustlessly by the ao network, ensuring privacy and security, preventing data breaches and ensuring the absence of interference from a centralized party.

To start using ao Computer as a developer, you'll need to 

, the operating system built on top of the protocol. Once aos is installed, you can run it by typing 

, a JavaScript/TypeScript library that lets you interact with ao from Node.js

Game developers should also consider two valuable tools integrated with the platform specifically for gaming apps — the Reality Protocol, which lets you create spatial worlds on ao, and the loomSDK, designed to let WebGL-based Unity applications interact with the Arweave chain through ao connect.

Non-technical blockchain users can explore ao Computer's growing collection of DApps from different niches, including 

. Examples of DeFi apps include a unified liquidity solution, 

 (DEX). One example of an AI-powered game is 

ao Computer's native token, AO, was launched in early 2024 through a 100% fair launch mechanism. AO's tokenomics features mirror some of 

's (BTC): maximum supply limitation of 21 million tokens, gradual release through a regular minting mechanism and emission halving every four years. Its fair launch mechanism allocates all 21 million AO tokens to the community contributing to ao Computer: 36% to Arweave (AR) token holders and 64% to users who bridge assets from other networks to AO. 

Although AO's tokenomics has a quadrennial 

 rule, emission halving doesn't occur all at once, as with Bitcoin. Instead, there's a gradual curve over which token releases decline smoothly. 

The AO token has several functions on the platform, including:

As of Jun 11, 2025, AO’s total supply (that is, all the tokens minted so far) stands at 4,183,207. According to the token’s release schedule, the entire supply of 21 million will be distributed by around August 2037.

You can buy the AO token on Bybit as a Spot pair with USDT (

As of Jun 12, 2025, the AO token was trading at $17.88, a 64.5% drop from its all-time high of $50.01 on Apr 7, 2025, and a 63.6% increase from its all-time low of $10.84 on Apr 16, 2025.

AO’s long-term price outlook is quite bullish. CoinCodex 

 at a high of $34.49 in 2027 and $75.74 in 2030, while CoinDataFlow is more conservative, 

 a maximum price of $12.74 in 2027 and $30.97 in 2030.

The ao Computer platform is among the most innovative 

 (DePIN) projects introduced in recent years. With its extremely scalable hyper parallel processing capacity and Arweave-based storage, ao Computer can challenge many centralized providers and competing web3 projects in this area. Because its modular design supports functional composability, the platform becomes a natural choice for DApps, blockchain services and AI agents that need to be flexible, adjustable and responsive to the constantly changing nature of the blockchain industry.

Advanced

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ao Computer (AO): The hyper parallel future of computing

CUDIS is a web3 wearable and longevity project. Dive into how CUDIS works, find out more about the CUDIS token, and learn how you can start trading CUDIS on Bybit.

Most people dream of living longer and healthier lives and earning passive income without additional work. CUDIS aims to make both of these possible through its 

 longevity protocol. The project combines an AI-powered smart ring with a personalized coaching app and blockchain incentives to gamify wellness, which can pay off in more ways than one.

In this article, we’ll take a closer look at how CUDIS works, the recent launch of the CUDIS token, and how you can start trading CUDIS on Bybit now.

 is a web3 longevity platform that uses real biometric data to reward users for building better habits. Its 

 is to drive longevity research and make living beyond 140 years of age a reality for most people. 

 that continuously monitors vital signs, and a mobile app that turns those readings into actionable advice. CUDIS gives users full ownership of their data, while also enabling them to tokenize or sell it if they wish.

CUDIS was founded in 2023 by Edison Chen and Jack Chang. Chen is a UCLA alumnus and the CEO of the project, while Chang is a UC Berkeley graduate who handles product and operations. Together, they lead a Silicon Valley–style team with talents from top tech and sports companies like Google, Samsung and Nike, and major crypto companies, such as Binance and Solana.

The project’s innovative approach to health has also attracted investments from venture capitalists. In September 2024, the company raised $5 million in seed financing, led by venture capital firm Draper Associates, along with SkyBridge Capital, Penrose Tech, SNZ and Borderless Capital. 

 has four main pieces: a wearable ring, a companion app, a data network and a Longevity Hub. Let’s look at each of them in detail below.

 that’s packed with health sensors. It continuously tracks dozens of biological metrics, such as sleep quality, heart rate, heart-rate variability (HRV), blood oxygen level, body temperature, stress indicators and more. Users simply need to wear the ring day and night, and it passively logs all vital signs.

The ring’s data syncs to CUDIS’s mobile 

, which uses artificial intelligence (AI) to turn raw biometrics into daily health advice. The app personalizes advice based on data history, helping the user gradually improve important habits such as sleep or exercise. Incidentally, the app isn’t limited to CUDIS ring users; it also allows users to import data from other devices, such as Apple Health, Garmin or Oura wearables. This expands both the platform’s ecosystem and the potential user base of the app. 

 is used to securely store and leverage all of this information. In the CUDIS model, each user receives a unique Longevity ID (LDID) that tags their data. This means that the users own their health data outright, and control who can access it. With this mechanism, the project aims to create a marketplace where aggregated and anonymized longevity data can be traded or analyzed, but only with the user’s permission. 

CUDIS also offers a community platform called the 

 that connects users with longevity science and wellness offerings. Through the hub, members get access to health programs, research partnerships and expert content on aging and well-being. 

In June 2025, CUDIS launched its native cryptocurrency, CUDIS, to power the incentive system. Users can earn CUDIS by accumulating “health points” in the app. Every time users log their sleep, exercise or other healthful habits, the system rewards them with points, which later convert into token airdrops.

CUDIS has set a fixed supply of 1 billion CUDIS tokens, allocated as follows:

Beyond rewards, CUDIS holders can also stake tokens in the app to boost their own health earnings and access higher-tier coaching modules. The token is also used as the payment currency within the CUDIS ecosystem, and users can spend CUDIS to buy premium health programs, advanced AI tools or certified longevity products. 

The CUDIS token is now available for trading on the Bybit Spot market.

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CUDIS: AI-powered wearable longevity protocol

Options

Put options are excellent tools for hedging and speculation. They have high potential for profit and can help you tide through severe price fluctuations.

Financial markets have been abuzz with activity since the 17th century. While they’re a great place to make profit, the risk of losing money is also very real. Multiple asset classes are available for trading: Among them, options are considered a relatively low-risk investment. Traditionally, stock options are traded, but it’s hard to ignore 

, given the boom of cryptocurrency in the past few years.

While options can be tied to any asset (e.g., stocks or bonds), crypto options are specifically tied to the performance of crypto assets. As a result, a trader doesn't need to own an asset before buying or selling the option for it. With crypto options, investors of any portfolio size can participate in the crypto market and reap its benefits.

 that confer upon the trader the right (not the obligation) to

 an underlying asset at a specified price or 

 after the premium is paid. An options contract usually lasts for a specific time period, within which the option must be exercised. This contract lapses on a particular date, known as the 

Crypto options trading is a way for options holders to be part of the crypto market without necessarily owning the crypto itself. Not only are crypto options cheaper than their underlying assets, they’re also perceived to be less risky. The low level of risk involved and high leverage potential are arguably the biggest draws for retail traders.

Apart from giving traders a way to predict or speculate on the financial value or price movements of assets in the market, options are also used by institutional investors for 

, crypto options have become a popular alternative for investors looking to get a slice of the crypto pie.

Crypto put options are contracts that confer upon the option buyer the right (but not the obligation) to 

a specific amount of an underlying asset at a predetermined price within a particular time frame. The predetermined price is known as the 

“Expiration time” refers to the time frame within which the options contract is still valuable. Once the expiration time has passed, the put option loses all its value.

Various underlying assets like stocks, bonds, indexes and futures can be traded using put options, by which the seller determines how the contract is run. The options buyer is required to pay the seller a specific fee on each share in order to purchase the contract. This fee is known as the 

, and it represents one of the same underlying assets. For example, one crypto option contract on BTC would be the same as controlling 1 BTC token. You do not have to own the underlying cryptocurrency to buy or sell put options. 

A crypto put option — the opposite of a crypto call option — confers upon the user the right to sell an underlying stock at the strike price before the expiration date is reached. Several factors affect the price of a put option, including (but not limited to) the volatility of the crypto market, interest rates, time decay, and the value of the strike or specific price.

Generally, the value of a put option increases with a drop in the price of the underlying asset.

A portion of a crypto put option’s value is tied to a fall in the price of the underlying stock. This means that the value of a put option increases with a decrease in the price of the underlying asset. A put option begins to lose value with a rise in the price of the asset to which it is tied. Following this, put options are used for hedging, or predicting a downward slope in the price of specific assets.

 is one used by put options traders as a risk management strategy. The main function of a protective put is to make sure that the drop in the price of a particular asset doesn’t fall below a set level. You can decide to sell or buy a put option, and the transaction is carried out on a 

When buying a put option, the buyer predicts that the value of the asset will drop over a specified time frame before the expiration date. When selling a put option, the seller speculates that the value of the asset will rise or remain unchanged during the valid period of the contract, or before the option expires.

If the market price moves in favor of the options holder, they can decide to exercise their put by selling the underlying asset at the strike (or set) price. Fundamentally, options can be divided into two types:

American-style options allow the holder to exercise their option on or before the expiration date, while European style options only allow the holder to exercise their options on the date of expiration. If the market price remains the same or increases, the options sellers get the premium paid by the buyer.

A put option is said to be OTM (out of the money) if it has no intrinsic value at expiration. 

, it is said to be ITM (in the money) if it still has intrinsic value at expiration.

Crypto Put Options vs. Crypto Call Options

Other than put options, the other main type of option is the call option, which increases in value as the price of the asset rises. Call options are the opposite of put options, but both types give holders the chance to earn a profit much higher than their investments.

A put option benefits from a decline in market price, while a call option benefits from a rise in the market value of the asset.

Selling both a call option and put option attracts a premium. In the event that the crypto market takes an unfavorable turn, the seller bears all the risks involved.

Let’s say that Sandra, an investor, decides to buy a Bitcoin put option as a form of insurance over her position in Bitcoin. After a while, she speculates that a 

 is near, and she isn’t ready to forfeit more than 10% of her long position in Bitcoin. 

Let’s assume Bitcoin is currently trading at $30,000 per coin, and Sandra purchases a put option that will give her the right to sell it at $27,000 within the next 2 years.

If, within 6 months, a 20% (500 points) loss is recorded, Sandra will have recovered 250 points simply by being able to sell at $27,000, rather than the current market price of $24,000, which is a loss of only 10%. Even if the market crashes to $0, Sandra will still only record a loss of 10%.

Conversely, if the market doesn’t drop within this time frame, Sandra can decide to let the put expire. If she does so, she will only lose the premium fee.

Buying and Selling Puts: Strategies and Examples

This is a popular strategy used by traders. Here, the trader buys a “going long” put option in the hope that the 

market price will fall below the strike price at expiration

. The benefit of this strategy is that in the event of a drastic price reduction, the trader can get back many times their initial investment.

Stock Q trades for $30 per share, with a strike price of $30 with 4 months to expiration. The premium is $1 per share.

If, at expiration, the share price is $29, the put breaks even. If it is between $29 and $30, a net loss is recorded, as only a part of the option’s premium is recovered. 

If the stock falls to less than $29, the trader gains $100 for every share they own. The lower the price, the higher the gain recorded by the trader. If the stock rises above $30, the put is rendered valueless, and the trader loses the option premium of $100.

This is simply the opposite of the long put. Here, the trader sells a “going short” put in the hope that the asset price will 

rise above the strike price at the point of expiration

. The seller of the put earns a premium in exchange for selling the put. This premium is the highest reward that can be obtained for trading a short put. If the asset price falls below the strike price, the trader is obligated to buy it back at the strike price.

If stock A is trading at $40 per share, with a strike price of also $40 with 5 months to the expiration date. The premium is $1 per share.

If, at expiration, the share price is below $39, the put costs the trader $100 for every dollar loss. The lower the stock price, the greater the loss incurred by the trader. If the stock price rises above $40, the seller earns the full premium. If the market price falls between $39 and $40, the seller earns only a part of the premium.

This is simply an upgrade of the long put. In this case, the trader buys both the underlying asset and a put option. This is a hedging technique. The trader expects the asset price to soar, but still wants a form of insurance in case the stock price declines. If the stock price actually declines, the long put covers the loss incurred.

Stock P trades for $30 per share, with a strike price of $30 with six months to expiration and a total premium of $100. So, the trader buys 100 shares of P for a total of $3,000 and one put option for $100.

If at expiration, the share price is $29 or $30, the put breaks even, resulting in a net loss, as only a part of the premium is recovered. If the share price drops below $30, the long put covers the loss evenly. If the share price rises above $31, the net gain increases by $100 for every corresponding gain in price, although the put becomes valueless, and the trader loses the premium fee they paid.

This strategy is very popular in options trading. The 

 is typically used when the call trader or call writer speculates on an increase in the future price of an underlying asset.

The key to using this strategy is to sell higher and buy lower. Simply put, you sell a put option with a higher strike price, and then buy another option with a lower strike. However, both options must have the same expiration date. 

Although the risks involved here are minimal, they do still exist. If, at expiration, the asset price moves below the strike price, a loss will be recorded, as the two put options will be ITM.

For instance, an institutional investor guesses that the price of Bitcoin — selling at, say, $20,000 per token — will increase within a month.

The investor can sell one put option for a $3,000 premium fee, with a strike price of $25,000 expiring in one month, and buy another put option for a premium fee of $1,000, with a strike price of $22,000, set to expire in one month.

Following this example, the investor gains a net profit of $2,000. The net profit is calculated as the difference between the two premium fees paid for the two options ($3,000 − $1,000 = $2,000). 

Conversely, if the price of Bitcoin falls between the strike prices of $20,000 and $25,000 per token at the date of expiration, the institutional investor will record a loss. 

The final price has an impact on the value of the investment. Here are the different possible scenarios (capped at a $3,000 loss and a $2,000 gain.)

is applied when an investor predicts a decline in the price of an asset.

This strategy aims to reduce cost and risks, while also ensuring that the investor makes as much profit as possible.

To use this strategy, the investor first purchases a “buy put” option, after which they purchase a “sell put” option with a lesser strike price. For this to work, both options must be tied to the same underlying asset, and have the same expiration date.

For instance, stock Q is trading around $350 and is bought at a $3 premium, with a total cost of $300 (100 x $3 = $300). A trader could buy it while also selling another put option at $330 at a $1 premium, with a total cost of $100 (100 x $1 = $100). The two options should, however, be executed simultaneously.

The option is calculated in spreads. The net debit spread is $2 (the price difference between the options, $3 - $1 = $2). The highest loss that can be incurred is the premium fee of $200 (i.e., $300 − $100 = $200).

By buying a put option and selling another, the trader spends $200 instead of $300 (from buying the $350 put alone). However, the profit potential is limited to [($350 - $330) x 100] - $200 = $1,800. 

Should I Buy Puts In-the-Money (ITM) or Out-of-the-Money (OTM)?

Deciding to buy puts in-the-money (ITM) or out-of-the-money (OTM) is entirely dependent on your specific investment objectives, the level of capital at your disposal, your risk appetite and the interest rates. The price for ITM put options is higher than that of OTM put options. This is because ITM put options have a lot of intrinsic value, and confer on options traders the right to sell underlying assets at higher prices. However, the lower cost of out-of-the-money puts is due to the fact that they’re likely to be less profitable at expiration.

How Is Crypto Put Option Trading Different from Traditional Put Option Trading?

Traditional put trading requires the trader to own the underlying stock or asset to be 

 contrast, in crypto put trading, the options trader is not obligated to own the particular asset before being able to sell or buy the option.

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