Perpetual Options

Term explanation

Perpetual Options are options contracts that have no expiration date, allowing the holder to retain the right to exercise the option indefinitely. In TradFi, these options are rare and typically trade over-the-counter (OTC) rather than on standardized exchanges, but are becoming increasingly popular in DeFi. Due to their lack of an expiration date, perpetual options tend to have higher premiums compared to options with similar strike prices and underlying assets but with set expiration dates.