Al-

What happens when the buyers of btc options want delivery instead of a fiat profit?  The sellers of these options would certainly have to own some bitcoin to fulfill the contract then...where are they going to get it...

There is no physical constraint to delivery of btc...there is no limit as to who is able to take delivery of btc...

I don't have a crude oil storage tank in my backyard to take delivery of crude I buy via options...but I do have a blockchain.info wallet...