Primer on Traditional Options

See here for an excellent explainer on traditional Call and Put options Call and Put Options | Brilliant Math & Science Wiki. Below is some important, high-level terminology associated with options:

Name	Description
Underlying Token	The asset underlying the option (e.g. BTC, ETH, AVAX)
Token Price	The current price of the underlying token in USD
Expiry	The date and time that the option terminates and the Payoff is calculated
Option Type	Calls: Benefits from an increase in token price Puts: Benefits from a decrease in token price
Notional	Denotes the option size, denoted in units of the underlying token
Strike	The token price threshold for the option, above (or below) which an option has a non-zero payoff.
Payoff	Final option payment from the option, calculated at expiry: Call Payoff = Max(0, Token Price - Strike) * NotionalPut Payoff = Max(0, Strike - Token Price) * Notional
In-the-Money	For Calls: the current token price is above the strike For Puts: the current token price is below the strike
Out-of-the-Money	For Calls: the current token price is below the strike For Puts: the current token price is above the strike
At-the-Money	The current token price is equal to the strike