Deribit, the preeminent crypto options exchange, unveiled groundbreaking options on Tuesday, empowering traders to adeptly navigate their bitcoin (BTC) and ether (ETH) positions in anticipation of the consequential U.S. presidential elections on November 4.

The advent of these election expiry options, intricately tied to prominent cryptocurrencies bitcoin and ether, has elicited enthusiastic acclaim from market participants.

“The U.S. election serves as a critical juncture for risk assets, including crypto, exerting a binary influence on fiscal policies and financial stability. Options are pivotal for hedging this inherent uncertainty, thus Deribit’s inclusion of this tenor is a logical progression,” elucidated Jeff Anderson, senior trader at STS Digital, in a conversation with CoinDesk.

This impending election holds profound implications for cryptocurrencies, as Republican candidate Donald Trump has recently embraced digital currencies, distinguishing himself from incumbent rival Joe Biden. While Trump has yet to articulate comprehensive crypto regulation proposals, his recent overtures to bitcoin miners and his impending presence at the Nashville conference have garnered substantial industry support, positioning BTC and the broader market as a wager on his potential presidency.

Read more: Top 10 Intrguing Impact of Stablecoins on Crypto Payment Adoption

Consequently, BTC and ETH are poised for heightened price volatility leading up to and following the elections, necessitating a greater investor focus on deploying derivatives such as options to safeguard their portfolios. Options provide a hedge against upward or downward price movements of the underlying asset, with call options mitigating upside volatility and put options shielding against price declines.

Deribit’s election expiry options will become active on July 18 at 8:00 UTC, expiring on November 8, three days post-election results due on November 5. On Deribit, a single option contract corresponds to one BTC or ETH.

“Deribit’s strategic introduction of these options is commendable; they furnish traders with the ability to position themselves before, during, and after the elections with a three-day post-result buffer. It’s an astute method for gaining leverage and hedging exposure concurrently,” remarked Laurent Kssis, crypto ETF specialist at CEC Capital, to CoinDesk.

Traditional market traders routinely employ options to manage exposure amidst binary events such as U.S. elections or uncertain corporate earnings.

“If a trader anticipates an asset could experience significant movement in either direction due to a binary headline event, they might opt for a straddle—purchasing both put and call options at the same strike price, with an expiration date subsequent to the headline event,” elucidates a global derivatives giant CME explainer titled “Using Equity Options in an Election Year.”

“We frequently observe these trades prior to major macroeconomic announcements or corporate earnings reports. Should the underlying asset diverge sufficiently from the strike price, surpassing the cost of the options, the trade proves profitable,” the explainer continues.