đš BINANCE NOW PAYS YOU TO SELL OPTIONS â BUT WHAT ARE YOU GIVING UP?
Binance just launched Covered Calls and Cash-Secured Puts for stock options
Both let you collect premiums
But here's what most traders overlook đ
You're not collecting free yield. You're accepting an obligation
$BNB
đ Covered Call
You own shares and sell a Call
If assigned, you sell those shares at the strike price â even if the market has rallied much higher
đ Cash-Secured Put
You lock USDC and sell a Put
If assigned, you must buy the shares at the strike price â even if they've crashed below it
â ïž The premium only cushions part of the risk
Collateral stays locked until the position is closed, expires or gets assigned
And early assignment is possible
đ My decision filter
Before selling either option, I'd ask:
Would I still accept that stock trade at the strike price without the premium?
If the answer is no, the income might be disguising a trade I never wanted to make
The real edge isn't collecting premiums â it's choosing obligations you can afford to honor
#StockOptions #tradingStrategy
Binance just launched Covered Calls and Cash-Secured Puts for stock options
Both let you collect premiums
But here's what most traders overlook đ
You're not collecting free yield. You're accepting an obligation
$BNB
đ Covered Call
You own shares and sell a Call
If assigned, you sell those shares at the strike price â even if the market has rallied much higher
đ Cash-Secured Put
You lock USDC and sell a Put
If assigned, you must buy the shares at the strike price â even if they've crashed below it
â ïž The premium only cushions part of the risk
Collateral stays locked until the position is closed, expires or gets assigned
And early assignment is possible
đ My decision filter
Before selling either option, I'd ask:
Would I still accept that stock trade at the strike price without the premium?
If the answer is no, the income might be disguising a trade I never wanted to make
The real edge isn't collecting premiums â it's choosing obligations you can afford to honor
#StockOptions #tradingStrategy