Note, #Binance just added covered calls and cash-secured puts to Stock Options. The important part isn’t the premium. It’s the obligation behind it.
With a covered call, your shares are frozen as collateral. If assigned, they are sold at the strike price, so a strong rally can leave you capped below the market.
With a cash-secured put, Binance freezes enough $USDC to buy the shares at the strike. If assigned, you must buy even when the market price is lower.
Both settle through physical delivery, with the shares custodied by #ALPACA . Useful tools for disciplined entries or extra income, but only if you already accept the assignment outcome. Premium reduces risk. It does not remove it.
With a covered call, your shares are frozen as collateral. If assigned, they are sold at the strike price, so a strong rally can leave you capped below the market.
With a cash-secured put, Binance freezes enough $USDC to buy the shares at the strike. If assigned, you must buy even when the market price is lower.
Both settle through physical delivery, with the shares custodied by #ALPACA . Useful tools for disciplined entries or extra income, but only if you already accept the assignment outcome. Premium reduces risk. It does not remove it.