Binance introduces stock option strategies

Binance has expanded its services into traditional finance by introducing new stock option strategies, specifically Covered Call and cash-secured put options. These tools allow investors to sell option contracts while maintaining necessary collateral to earn premium income.

In Covered Call transactions, the investor's existing shares serve as collateral, with settlement occurring through physical delivery of the securities. For cash-secured puts, users utilize USDC as collateral. If the market price falls below the predetermined strike price, the user is obligated to purchase the security at that set price, which can help offset losses through the earned premium.

These services are subject to regional availability and specific requirements. The platform supports limit orders only, and funds must be held in a Stablecoin Funding Account. The infrastructure involves physical delivery of securities, with Alpaca acting as the custodian for free delivery of securities.