Long Call

Explore the Long Call strategy. This guide covers the basics of this popular options trading strategy, including its risks, rewards, and structure.

Directional exposure


Risk level


Volatility exposure



Buying a call (going long) means paying for the right to buy the crypto underlier at a given price (strike). Options are cash-settled in cryptocurrency ("crypto-settled"), and we support multiple crypto base currencies. For example, with USDC-settled options, the payoff is the difference between the USDC value of the underlier at expiration and the strike. The main benefit of buying a call, as opposed to buying the underlying crypto directly, is that if the underlier does not move in the direction you expect, the most you can lose is the cost of the call (the premium).

DeVol Trading Tip: Buy a call if you expect the value of the underlier to be above the strike at expiration, enough to cover the cost of the call (i.e. the premium paid) and make a profit.


BTC is currently trading at BTC/USDC 40,000. You buy one BTC ATM (at the money) call option with a strike of BTC/USDC 40,000 and a one-week maturity. Implied volatility is 4% over the time to expiration (one week). The expected range for BTC at expiration, given six standard deviations in a lognormal scale, is BTC/USDC 31,385 to 50,980. Assume that the option is USDC-settled. Consider the following possibilities and associated payoffs when the option expires:

In over 99% of the outcomes, there is only a small discrepancy between the DeVol settlement vs. what a traditional option would pay. As this example illustrates, this discrepancy can resolve itself in the trader’s favor or against.

In the event of a very large, unusual increase in BTC price that falls outside of the expected range (far in the tail), this discrepancy becomes more significant. For example, if BTC doubles in a week and ends up trading at BTC/USDC 80,000, your payoff is capped to USDC 10,850. Why? This is because the DeVol protocol is fully collateralized, ultimately making for a safer exchange and trading experience. Settlement is based on BTC/USDC 50,980 as the maximum expected BTC price. If BTC ends up at BTC/USDC 1 million, the payoff would still only be USDC 10,850. Even though BTC is a volatile asset, we think an extreme event like this is as likely to happen as Dr. DeVol being struck by lightning while winning the lottery.

Definitions & Payout

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