7. Option Chain

The option chain displays all available options for an asset within a specific expiration period. It includes both puts and options to buy, showing their price levels, option prices, and breakeven prices in one view.

For advanced traders, viewing the option chain is a faster way to browse and compare contracts than using the default flow for buying options. It gives deeper insight into each option’s inner mechanics by showing the option price and breakeven price side by side.

When trading Dream options, the option price matters less than in traditional markets because each contract is fractionalized down to $1. This means you are not required to purchase the full option, allowing you to take smaller positions and manage risk more flexibly.

Your breakeven price is the level BTC needs to reach by the time your option expires for you to make back exactly what you paid, but you can still make a profit before that happens. As BTC moves closer to your price level, the chance of your option finishing in profit goes up, which makes other traders willing to pay more for it even if it hasn’t reached breakeven yet. This happens because your option’s value changes with how likely it is to win, and that depends on BTC’s movement, time left before expiration, and market volatility.

When BTC moves your way before expiration, your option’s value can rise, making it possible to sell early for a profit.

The most important thing to remember is that breakeven only matters at expiration. Before then, your option’s value moves based on BTC price, time, and belief in where BTC could go.