Options trading has traditionally been limited to centralized exchanges, which comes with the risk of a third party controlling your assets. However, decentralized options trading is now an option, giving you full control over your assets. Options trading allows traders to bet on the price direction of an asset. For example, buying a call option gives the trader the right to purchase an asset at a specific price on a maturity date if they believe the price will rise. On the other hand, buying a put option gives the trader the right to sell an asset at a specific price on maturity if they believe the price will fall.

Opyn and Deri Protocol are DeFi options platforms that allow traders to trade derivatives in a decentralized manner. Opyn offers a product called "Squeeth" which allows traders to trade the price of ETH using leverage. Deri Protocol offers three major derivative types, including Perpetual Futures, Everlasting Options and Power Perpetuals. Their DPMM mechanism is used for everlasting options trades and trades are executed under an AMM paradigm with positions tokenized as NFTs.

Ribbon finance is another platform that offers DeFi options trading. It offers structured finance products such as covered calls and put-selling in their vaults for yield generation for investors. Traders deposit their crypto into the chosen Ribbon vault and the intended trading strategy is automatically run on their asset.