Options are derivative contracts that give the purchaser the right, but not the obligation, to buy or sell the underlying asset at a predetermined price on or before a specific date. A call option gives the right to buy, a signal the holder has a bullish stance, while a put option gives the right to sell. Options prices are determined by several factors, including market direction as well as implied volatility, which is influenced by the supply and demand for options.
Source: https://www.coindesk.com/markets/2023/04/04/bitcoin-volatility-indexs-correlation-with-price-flips-positive-boosts-appeal-of-bullish-call-options/?utm_medium=referral&utm_source=rss&utm_campaign=headlines