Traceoptions in Junos OS are used for detailed debugging and troubleshooting of protocols and processes within the system. They are not enabled by default due to the potential performance impact and volume of data generated. Instead, traceoptions are enabled through specific configuration settings under the relevant protocol or process hierarchy. This allows administrators to target their troubleshooting efforts and control the scope of logging. By default, the output generated by traceoptions is stored in files located in the /var/log directory, with the file name typically specified in the traceoptions configuration. This structured approach to logging and debugging helps in diagnosing complex issues without overwhelming the system or the administrator with irrelevant data.