An NFT Call option gives the holder the right, but not the obligation, to buy a specific NFT at a predetermined price at a later date. In simpler terms, you can reserve a price to buy an NFT in the future and maximize your upside.
NFT call options can be used in a variety of ways. If you're feeling FOMO about a collection but not sure if the price will keep pumping, buy a call option and exercise it to purchase the underlying NFT for cheaper than its floor. If you want to profit from your bullish bets on the floor price, you can also do so by buying call options and exercising to take profits.
NFT call options have several key components, including:
Collateral is the NFT that will be purchased if the option is exercised.
Strike Price is the price at which the holder can purchase the collateralized token.
Expiration Date is the date by which the holder must decide whether to exercise the option.
Premium is the price the holder pays to obtain the option.