Binance adds covered calls and cash-secured puts

Binance announced on October 15 that it is expanding its Stock Options offering with Covered Call and Cash-Secured Put strategies, according to the Binance announcement, published by the Binance Team.

The change adds short-side options positions backed by collateral. For a Covered Call, users hold shares of the underlying stock and sell a call option against those shares, collecting a premium upfront. For a Cash-Secured Put, users sell a put while setting aside the full cash amount required to buy the shares if assigned, also collecting the premium upfront.

The collateral requirements are explicit: shares secure Covered Calls, while USDC$0.9996▼0.01% secures Cash-Secured Puts. That gives Binance users options strategies with defined collateral requirements and an income-generating purpose, alongside the exchange’s higher-risk perpetual futures products.

The trade-off is that capital is committed. A Covered Call requires the user to hold the underlying shares, while a Cash-Secured Put requires the full purchase amount in USDC to remain available if assignment occurs. The announcement does not state which stock options are available or what premium ranges users should expect.

Settlement also happens through the traditional securities system rather than inside Binance’s own custody operation. The options involve physical delivery of the underlying shares, which are custodied by Alpaca on behalf of Binance users. Nest Trading Limited acts as Binance’s introducing broker and routes orders to Alpaca Securities LLC for execution, clearing, settlement and custody.

Binance says it does not handle or custody the securities involved. For users, that makes the broker-and-custodian structure part of the product mechanics: Binance provides the offering, while Nest Trading and Alpaca handle the specified market infrastructure.

Most U.S. stock options trade from 9:30 a.m. to 4 p.m. ET, according to the announcement. Some exchange-traded fund and exchange-traded note options trade until 4:15 p.m. ET.

The launch broadens Binance’s derivatives menu beyond perpetual futures and creates a route for users seeking premiums or targeted stock entry prices through collateralized positions. The announcement does not provide a forecast for the effect on Binance’s overall derivatives volume, so whether the products attract a different class of trader remains an open question. Related coverage: Binance adds five equity-linked TradFi perpetuals.