What are PerpOptions?
PerpOptions are options contracts written on Bybit's TradFi perpetual contracts — an industry-first product that gives traders the ability to trade options on traditional finance assets (real equities, indices, ETFs such as TSLA, NVDA, QQQ) through Bybit's perpetual contract infrastructure, settled in USDT, available 24/7.
What option style is used?
PerpOptions are European-style Options, meaning it can only be exercised at expiry. Sellers are therefore not exposed to early exercise risk. This structure provides a simpler and more predictable trading experience, supports tighter spreads, and aligns with Bybit’s existing Crypto Options experience.
How is settlement handled?
PerpOptions are cash-settled in USDT at expiry. No physical delivery of the underlying asset is involved.
What are the trading hours?
PerpOptions can be traded 24/7, including weekends and public holidays. This provides greater flexibility than traditional Options, whose trading hours are generally limited to those of the underlying market.
Note: Although trading is available around the clock, settlement follows the market close and takes place at 20:00 UTC during Eastern Daylight Time (EDT) and 21:00 UTC during Eastern Standard Time (EST).
What contract multiplier is used?
PerpOptions use a contract multiplier of 1, instead of the 100-share multiplier commonly used in traditional Options markets. This lower contract size reduces the entry threshold and enables more precise position sizing.
What margin modes are supported?
PerpOptions support both Cross Margin (CM) and Portfolio Margin (PM) under the Unified Trading Account (UTA). Eligible Perpetual and Options positions may offset each other, reducing margin requirements and improving capital efficiency.
Can I sell options (write naked)?
Yes. PerpOptions support a range of sell-side strategies, including naked calls and puts, covered calls, and multi-leg strategies such as spreads, straddles, and strangles. All positions are subject to the applicable margin requirements.
What lot sizes are available?
Fractional contracts are supported, with the minimum lot size determined by the underlying price:
What expiry dates are available?
PerpOptions offer next-day, 3-day, 4-day, current-week, next-week, tri-weekly, and monthly expiry cycles. Expiries that fall on a weekend or public holiday of the underlying market will be skipped (no contracts expire on those days).
What time does settlement occur?
Settlement follows the close of the underlying market:
Note: Unlike PerpOptions, Crypto Options settle at a fixed time of 08:00 UTC.
How is the settlement price determined?
The settlement price is calculated using the 30-minute TWAP (Time-Weighted Average Price) of the underlying index price immediately before expiry. This mechanism helps reduce the impact of short-term price volatility and potential manipulation and is consistent with the methodology used for Crypto Options.
What happens when a stock split occurs?
When Stock Split occurs, the system automatically adjusts all affected positions as follows:
These proportional adjustments preserve the economic value of the positions. The Mark Price remains continuous, meaning the split adjustment itself does not cause a price jump. No user action is required.
How are dividends handled?
- Regular Dividends: No separate adjustment is made, as expected dividends are already reflected in the forward price through a discrete dividend schedule and incorporated into market quotes.
- Special Dividends: If a special dividend exceeds the applicable threshold, an adjustment ratio will be calculated and applied through the standard split or reverse-split adjustment process.
How are mergers, delistings, and symbol changes handled?
How do corporate actions affect my positions?
Corporate actions do not, by themselves, change the economic value of affected positions at the time of adjustment. Bybit automatically adjusts the Strike Price and contract quantity based on the aggregate exercise value principle, under which Strike Price × Quantity remains constant. However, the market value of your positions may continue to fluctuate after the adjustment.
Do I need a separate account?
No. PerpOptions are fully integrated into Bybit’s Unified Trading Account (UTA), allowing you to trade both Crypto Options and PerpOptions within the same account.
Do I need a traditional brokerage account?
No separate traditional brokerage account or brokerage onboarding is required. Eligible users can trade PerpOptions directly through their existing verified Bybit account and UTA.
Do PerpOptions represent ownership of the underlying securities?
No. PerpOptions are derivative contracts based on TradFi Perpetuals and do not represent ownership of the underlying stocks, indices, or ETFs. Users do not receive voting rights or shareholder dividend entitlements. The contracts are cash-settled in USDT, with no physical delivery of the underlying asset.
Corporate actions may be reflected through applicable contract pricing or position adjustments, but such adjustments do not grant users any shareholder rights.
How is the underlying index price determined?
The TradFi Index Price is calculated using a weighted combination of multiple price sources.
During regular trading hours, prices from traditional market data vendors, centralized exchange (CEX) indices and futures, and decentralized exchange (DEX) oracles are included.
Outside regular trading hours, vendor prices that are no longer updating are excluded, and the remaining crypto-sourced prices are used to calculate the Index Price.
Crypto Spot and contract constituents are weighted based on their 24-hour trading volume, while traditional market data vendors are assigned fixed weights ranging from 10% to 20%.
How is the Forward price constructed?
The Forward Price is determined using a multi-tier methodology:
- Primary: (Default) A multi-strike weighted synthetic Forward based on put-call parity is used when sufficient liquidity is available.
- Fallback 1: Under low-liquidity conditions, the system uses a Single At-The-Money (ATM) Put-Call Parity Pair.
- Fallback 2: If neither method is available, the Cost-Of-Carry model is used as the final fallback.
What strategies can I use?
PerpOptions support a range of trading strategies, including:
- Directional Strategies: Buy or sell Calls and Puts to express a market view.
- Spread Strategies: Create bull or bear spreads using Calls or Puts.
- Volatility Strategies: Use straddles or strangles to trade expected volatility.
- Income Strategies: Use covered Calls or naked Puts to generate premium income.
- Delta Hedging: Manage Perpetual and Options positions within the same UTA. Under Portfolio Margin, offsetting positions may reduce margin requirements and improve capital efficiency.