By trading options, you can also handle the volatility more deliberately.
You need a counter party for the trade.
Only a fool would trade derivative based on bitcoin or short volatility.
Yeah, vanilla options are difficult to find a counter party as the seller bears very high risk. But binary options offer you an easy way to trade volatility. By binary options, I mean exchange traded options with multiple strike prices not the one for betting.
How would a seller price binary option then? The premium would need to be high even for short term binary option, and who is going to buy it?