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Binance has introduced Covered Call and Cash-Secured Put stock options strategies, allowing users to access these short-side options trading methods on its platform.
Binance has officially added Covered Call and Cash-Secured Put strategies to its Stock Options suite. These are short-side options strategies that allow users to sell contracts backed by collateral—either holding underlying shares (Covered Call) or holding sufficient USDC (Cash-Secured Put)—for the purpose of generating potential income. According to the announcement, participation requires users to have Stock Options enabled on their accounts and to meet specific collateral requirements. Only limit orders are available, and collateral remains frozen during open positions. Settlement and custody of underlying shares are managed by a third-party (Alpaca Securities LLC), with Binance acting as introducing broker and not holding the securities directly. Full risk disclosures and operational steps were outlined by Binance.
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Binance is a major cryptocurrency exchange based in Hong Kong, recognized for its high trading volumes, extensive liquidity, and proprietary BNB coin, which is used within the platform to help reduce commissions. The platform offers features such as advanced performance and the option of a proprietary cold wallet for asset storage, but users may encounter a complex verification process and a commission structure that can be intricate to understand. For a detailed overview of the broker's features, visit the full review on Traders Union.
For more context, our earlier news about Binance highlighted the company's efforts to recover momentum by seeking $100 million in private funding at a significantly reduced valuation following regulatory and operational challenges. You can read the previous Binance update on Traders Union for details.