Blackrock opens options trading on their Bitcoin ETF, others are expected to follow. In short, options are placing a bet on the price of Bitcoin on a future date. If correct, you are entitled to either purchase Bitcoin at a lower price from someone who incorrectly bet it would go up, or sell at a higher price to someone who incorrectly bet it would go down. This is a popular way for people to hedge their trades.
Video Courtesy of CNBC
