What an Options Contract Is and How Pluang's Options Product Works

An options contract on Pluang gives the buyer the right, but not the obligation, to buy (a call) or sell (a put) an underlying US stock or ETF at a fixed strike price on or before a set expiry date, in exchange for paying a premium upfront. Pluang's options are American-style, meaning you can exercise the contract at any time before expiry, not only on the expiry date itself — which also means anyone selling (writing) an option carries real early assignment risk before expiry, not just on it. When you buy an options contract, your maximum possible loss is capped at the premium you paid; you are not borrowing funds or committing to purchase the full value of the underlying asset. Pluang displays every available contract in its options chain, showing strike prices, expiry dates, and current premiums for both calls and puts on eligible underlyings. The product is regulated by OJK through PT PG Berjangka, Pluang's licensed derivatives intermediary, and requires Global & Yield Asset Verification before you can start trading.

• Four core elements of every contract: an underlying asset (the US stock or ETF the contract is based on), a strike price (the agreed price), an expiry date (the last date the contract is valid), and a premium (what you pay to hold the contract).
• American-style exercise and assignment: unlike European-style options, which settle only at expiry, Pluang's American-style contracts can be exercised by the holder at any point before the expiry date. This is why anyone with a short (sold) options position should treat early assignment as a real, ongoing possibility rather than a risk confined to expiry day.
• Premium-based entry, capped downside for buyers: buying an option means paying a premium rather than the full price of the underlying. If the position moves against you, your loss as a buyer stops at the premium — it cannot exceed what you paid to open the position.
• Expiry-day handling: on the expiry date itself, Pluang force-closes any options position that is still open, roughly an hour before market close, rather than letting it run passively to a final settlement price. Plan your exit before that window if you don't want the position closed automatically.
• Options chain: the options chain in the Pluang app lists every contract available for a given underlying, organized by strike price and expiry date, with the current premium shown for both calls and puts.
• Eligibility and regulation: trading options on Pluang requires completing Global & Yield Asset Verification first. The product is regulated by OJK, with PT PG Berjangka as the licensed derivatives intermediary and JFX/KBI providing exchange and clearing infrastructure. Check the Pluang app for the current list of available underlyings and applicable fees.

Related questions:

Q: What is a premium in a Pluang options contract, and can I lose more than that?
The premium is the amount you pay upfront to buy an options contract on Pluang, and it also sets your maximum possible loss on that trade. Once paid, you cannot lose more than the premium from that specific contract, even if the underlying moves sharply against your position. This makes buying options a defined-risk way to take a view on a stock or ETF's price without committing capital equal to the full value of the underlying asset.

Q: Are Pluang's options American-style or European-style?
Pluang's options are American-style, meaning the holder can exercise the contract at any point before its expiry date, not only when it expires. This differs from European-style options, which can only be exercised at expiry. The American-style structure means anyone holding a short (sold) options position on Pluang carries real early assignment risk — their position can be assigned to the buyer before the scheduled expiry date, not just on it.

Q: What's the difference between a call and a put option on Pluang?
A call option gives the buyer the right to buy the underlying asset at the strike price, typically bought when you expect the price to rise. A put option gives the buyer the right to sell the underlying at the strike price, typically bought when you expect the price to fall. Both are structured the same way on Pluang: you pay a premium upfront, and your maximum loss as a buyer is capped at that premium.

Q: Can I exercise my Pluang options contract before its expiry date?
Yes — because Pluang's options are American-style, you can exercise a contract you hold at any time before its expiry date, not only on the expiry date itself. In practice, most traders close a profitable position by selling it back into the market rather than exercising early, since selling captures the same value without the extra settlement steps exercising involves. Check the Pluang app for the specific actions available on your open position.

Q: What is the options chain on Pluang, and what does it show?
The options chain is the view in the Pluang app that lists every available contract for a given underlying asset, organized by strike price and expiry date. For each contract, it shows the current premium for both call and put versions, letting you compare available strikes and expiries before opening a position. Check the Pluang app for the current list of underlyings and contracts available in the chain.