How to Buy Your First Option Contract on Midas
Enter the options market by purchasing your first call or put contract. Learn the basics of options trading on Midas.
An option is a right, not an obligation, and it expires. That single fact explains most of what surprises new option buyers: a contract can be correct about direction and still expire worthless because it ran out of time. Nothing here recommends trading options; it describes how the screen works and what the position does.
Before you start
- Funds in the options account, transferred from spot.
- An understanding that the premium paid is the maximum loss on a bought option, and that it can go to zero.
- The risk disclosure read.
Transfer Funds to Your Options Account
Navigate to Wallets > Transfer and move USDT from your Spot wallet to your Options account. Options trading requires a dedicated margin balance that is separate from your Spot and Futures wallets.
Open the Options Trading Screen
Navigate to Trade > Options from the tab switcher. Select the underlying asset you want to trade options on, such as BTC or ETH. The options chain will load, showing all available contracts sorted by expiration date.
Understand Calls and Puts
A Call option gives you the right to buy the underlying asset at the strike price before expiration. Buy calls when you expect the price to go up. A Put option gives you the right to sell the underlying asset at the strike price. Buy puts when you expect the price to go down or to hedge existing holdings.
Select a Contract
Choose an expiration date and a strike price from the options chain. In-the-money options (ITM) cost more but have higher probability of profit. Out-of-the-money options (OTM) are cheaper but require a larger price move to become profitable. Review the premium (price) and the Greeks displayed for each contract.
Place Your Order
Select Market or Limit order type. Enter the number of contracts. Review the total premium cost, which is the maximum amount you can lose as a buyer. Tap 'Buy Call' or 'Buy Put' to confirm. Your position will appear in the Options Positions section.
Risk Disclaimer
Options trading involves significant risk. While buyers' risk is limited to the premium paid, options can expire worthless, resulting in a total loss of the premium. Past performance does not guarantee future results. This tutorial is for educational purposes only and does not constitute financial advice.
If something goes wrong
- The contract lost value while the underlying barely moved.
- Time decay. An option loses extrinsic value every day, faster as expiry approaches — see the Greeks guide for theta.
- The order will not fill at the quoted price.
- Option books are thinner than spot. Check the bid-ask spread on that strike, and price inside it rather than at the last trade.
Frequently asked questions
- What is the most I can lose?
- On a bought option, the premium. Selling options is a different risk profile entirely and should not be approached as the same trade.
- Call or put?
- A call gains as the underlying rises, a put as it falls. Both decay with time regardless of direction.
- Do I have to hold to expiry?
- No. Most positions are closed before expiry, which recovers whatever extrinsic value is left.