Like put and call options for a stock, but for the future price of Bitcoin?
It is possible, there various sites that provide option (or option like) trading. Each have their pros and cons. Of the ones I know of theses seemed the best. However YMMV and caveat emptor.
At time of writing here are some simple ones:
- btc oracle <-- Looks like a very elegant (bitcoin) solution. Just send some bitcoins to the addresses and if (in 15min, 3hr, 1day, 1week respectively later) you are in the money you are sent back X a Multiplier.
- btc Levels <-- Similar to btc oracle in concept. Except you have to login to place your (high low positions) bets. Plus you can only place positions for up to the next 24 hr.
However neither of those let you buy/sell an option that is in the money(or out of), you have to wait until the option expires. And neither of them let you write options.
OP, here you go: Haven't used the service myself.
MPEx is fine, it offers options.
Accounts there are expensive (30 BTC IIRC) but there are third-party brokers that will let you avoid these fees by offering a different fee structure.
If you want to deal with MPEx directly you should have some knowledge about PGP as its security architecture is based on it and requires to be able to clearsign orders.
It doesn't have any specific issues that I know of (except for the opinionated PR perhaps).
I have never traded options, so you should make sure that you look into any details before trading. Just keep yourself safe!
But here are some sites I found: