Binance has broadened retail access to income strategies based on ETH options, enabling users to sell options and participate in structured products that embed options payoffs. The move integrates options writing, margin choices and staking overlays into a suite intended to expand yield opportunities while emphasizing user suitability and risk controls.
Binance supports multiple margin modes for writers. Cross margin uses all assets in the account as collateral and lowers liquidation likelihood by pooling risk, isolated margin confines collateral to a single position, limiting losses to the allocated amount, and portfolio margin evaluates net portfolio risk and can be more capital-efficient when positions offset one another; collateral can include ETH or approved assets such as stablecoins.
Options writing is the practice of selling options contracts to collect an upfront premium from buyers. Sellers can write call options, obligating them to sell ETH at a strike price, or put options, obligating them to buy ETH at a strike price; the seller keeps the premium if the option expires out-of-the-money.
The platform illustrates income potential with short examples and typical premium ranges: selling a 7‑day ETH call at a $3,500 strike for a $100 premium yields immediate income if ETH remains below the strike, while a $2,500 put sold for $75 returns the premium if ETH stays above the strike.
Typical premiums for short-dated options may represent about 1–5% of the underlying value; in high-volatility scenarios these can annualize hypothetically to 50–200% APY, though such figures accompany significant risk and are not guarantees.
Structured products and staking synergy
Binance packages options strategies into user-friendly products. ETH Income Options steer toward covered calls (selling calls against owned ETH) or cash‑secured puts (selling puts with capital set aside), aiming to regularize premium income while preserving defined exposure; as an example, a holder of 1 ETH can earn premiums that may range from 0.5% to 2% weekly when participating in covered‑call style products, with the trade‑off of capped upside if the call is exercised.
Dual Investment products mimic options-like payoffs by committing assets at a target price and APY; the mechanism effectively sells an implicit option and delivers enhanced yield in exchange for potential conversion at maturity.
Binance also allows users to layer strategies with ETH staking: users receive Wrapped Beacon ETH (WBETH) when staking, and that staked value can serve as collateral for options writing, enabling simultaneous staking rewards and premium income.
The income potential from options writing comes with material downside. Selling naked calls exposes sellers to theoretically unlimited losses if ETH rallies well above the strike, selling naked puts risks large losses if ETH collapses below the strike, and market moves can trigger margin calls that require immediate collateral top-ups or result in forced liquidation.
Binance enforces a mandatory suitability assessment and promotes risk management that evaluates a user’s experience, risk tolerance and financial capacity before granting access to options writing; the exchange also promotes educational resources and recommends risk-management tools such as stop‑loss measures.
By democratizing access to ETH options and folding them into structured products and staking overlays, Binance opens new yield routes for retail users while retaining mandatory suitability checks and margin controls.
