Binance, the leading crypto exchange by trading volume, has just made it possible for anyone to earn a passive-like income through ether options, opening up a strategy once limited to professionals.
The exchange announced in a press release shared with CoinDesk that it allows users to write (sell) ether options, helping them effectively manage risk and generate additional income. This decision responds to increasing demand from both retail and institutional investors for advanced derivatives trading tools.
The announcement builds on Binance’s move to democratize bitcoin possibilities writes and reflects the explosive demand for BTC, ETH and ETF based instruments.
The institutional appetite for these products is undeniable; earlier this year, BlackRock’s IBIT options notably eclipsed Deribit’s native BTC options in volume, marking a defining moment for the crypto-derivatives landscape.
“Binance remains committed to providing innovative tools that meet the evolving needs of our users,” said Jeff Li, VP of Product at Binance. “The introduction of ETH Options writing and our Options platform upgrade will empower traders with faster execution, greater flexibility and richer market data to support more advanced and strategic trading approaches in the growing crypto derivatives space.”
Options are derivative contracts that give the holder the right, but not the obligation, to buy or sell an underlying asset at a predetermined price within a specific time frame. These contracts pay out at a later date depending on whether the asset’s price rises above or falls below a designated level.
While the call buyer profits from price increases, the seller (writer) takes the opposite view, essentially providing insurance against bullish moves in exchange for an upfront premium. This premium serves as immediate income.
Experienced traders have increasingly used this strategy over the past few years, writing calls or bets on Deribit, often against their coin holdings, to generate income.
Binance users can now do the same with ether options by posting margin to secure their commitments, with access subject to a mandatory suitability assessment to ensure responsible trading.
To encourage instant liquidity, Binance is also rolling out a steep 20% discount on both Taker and Maker fees to VIP users across its newly listed ETH, BTC, BNB and SOL contracts – a move aimed at cementing its dominance in the competitive crypto options space.
Platform upgrade
In an effort to capture a larger share of the derivatives market, Binance has overhauled its options platform with a series of infrastructure upgrades designed for high-frequency traders and institutional players.
The revamped ecosystem boasts significantly higher API throughput and lower latency, enabling faster order execution during periods of high market volatility. In addition to speed, the exchange has expanded its available strike prices across multiple assets, giving traders the granularity needed for complex hedging and speculative strategies.
To enhance market transparency, the platform now integrates advanced WebSocket streams that deliver the deep market data needed for sophisticated technical analysis.
