Binance has added two stock-options strategies that let users earn premiums by pledging shares or USDC, while taking on obligations to deliver or buy shares if their contracts are assigned.
The exchange’s announcement names the strategies Covered Call and Cash-Secured Put. Sellers receive a premium upfront, and the collateral remains committed until the position closes, expires or is assigned. Binance presents the approaches as ways to earn premiums against stock holdings or set a possible share-purchase price.
A covered-call seller backs the contract with shares. If the shares rise above the strike, the option may be exercised and the seller may have to deliver the pledged shares at the agreed price. The premium offsets only part of a decline in the stock’s value.
The put seller sets aside USDC to cover the cost of buying shares if assigned. If assigned after the share price falls below the strike, the seller still buys at the agreed strike price.
The contracts settle through delivery of the underlying shares. Binance said Alpaca Securities LLC handles execution, clearing, settlement and custody, and holds the securities on behalf of Binance users. Binance also said it does not handle or custody the shares.
The exchange cautioned that the product may not be available in every region. The announcement did not give a date for any further rollout.
