Options on bitcoin futures just launched. Here’s what you need to know

They're finally here. Exchange-traded bitcoin options launched Monday on the Chicago Mercantile Exchange.Traders of all stripes have been desperate for exchange-traded options on bitcoin because options can be used to define risk while expressing nearly any market thesis and it is that ability to limit losses that is so important in bitcoin, which saw a 1,900% rally in 2017 followed by an 82% break before bottoming late in 2018.Traditional options allow the buyer of the option to purchase the underlying asset in the case of a call option or sell the underlying in the case of a put option. Options on futures are just a bit different in that the owner of a call option has the right at option expiration to take a long position in the bitcoin futures contract traded at the CME, while the owner of a put option has the right to take a short position…

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