Deri Protocol is a platform for trading options contracts, an agreement between traders to purchase or sell an asset at a predetermined price on or before a specified date. These contracts are derivatives that can be based on various underlying assets such as stocks, cryptocurrencies, and financial indexes. Options contracts are divided into two categories: calls, giving the trader the right to buy the underlying asset, and puts, giving the right to sell.

The four key components of an options contract are size, expiration date, strike price, and premium. The size refers to the number of contracts being traded, the expiration date is the last day the option can be exercised, the strike price is the price at which the asset will be bought or sold if the option is exercised, and the premium is the trading price of the option. The value of the premium is influenced by several factors such as the underlying asset price, strike price, time remaining until expiration, and market volatility.

In addition to hedging, options contracts are also used for speculative trading. For instance, a trader who believes the price of an asset will rise can buy a call option. Options trading can employ various strategies based on four basic positions: buying a call or put option, or selling a call or put option contract.

Deri Protocol offers traders the ability to trade options contracts in a secure and efficient manner.