Beginner's Guide to Binance Stock Option Selling: Covered Calls and Cash-Secured Puts

Binance

20 October 2026

Binance Stock Options currently do not support sell-to-open orders. Per Binance's official announcement, the first phase of stock options is "long only (buy calls / buy puts), no sell-to-open or short positions allowed". This means if you want to execute covered calls or cash-secured puts for US stocks or ETFs on Binance, there is no available operation path right now. The seller strategies mentioned in the title cannot be implemented on Binance's stock option product for the time being.

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Below we break down the full context, what you can actually do right now, and where you can go to implement seller strategies if that is your goal.

First, confirm: What is the "stock option" product you see?

Binance launched stock options in September 2026, with US stocks and ETFs as underlying assets, using physical settlement. Nest Trading Limited acts as the introducing broker, and Alpaca Securities is responsible for clearing and custody. The entry is on the "Options" tab of the stock K-line page, only limit orders are supported for placement, funds come from your Funding Wallet, and you can use currencies including USDC, USDT and more.

But the official announcement clearly states in the product description: trading directions are long only. That means you can only pay premiums as an option buyer, you cannot collect premiums as a seller. A covered call requires you to hold the corresponding stock first, then sell the matching call option; a cash-secured put requires you to sell a put option and set aside enough cash. The first step "sell-to-open" for both strategies does not work on Binance stock options.

If your goal is to act as a stock option seller on Binance, there is no executable operation available right now. This is not an issue of hidden interface settings or insufficient account level, the product phase itself does not support this function.

Binance's existing option seller function targets crypto assets

Binance does have option shorting (option writing) features, but they apply to BTC and ETH crypto options, not stock options. To use this feature, you need to upgrade your account to the "Options Long & Short" trading mode, you need to pay margin when placing a sell-to-open order, and under the default cross margin mode, combined margin calculation for covered calls or spread strategies is not supported.

That means even if you act as a crypto option seller on Binance, the precondition of "using held stock positions to offset risk" for covered strategies does not hold — the call options you sell do not have corresponding spot or stock positions to deduct margin requirements. Binance's official statement says: Strategies that require combined margin calculation, such as covered call options or spread strategies, are not supported at this time. Users who join the "Options Boost Program" and meet high thresholds (30-day trading volume over 100 million USDT, total assets over 1 million USDT) can apply for a unified SPAN account via API, but this is clearly not a beginner-friendly scenario.

So Binance's crypto option shorting and stock option selling are two completely different things: the first lets you sell but only for BTC/ETH underlying, the second targets stocks but does not allow selling at all.

What covered calls and cash-secured puts are, and why you cannot do them on Binance right now

It is worth spending a few minutes understanding the mechanism of these two strategies, as they explain why you cannot get started at all without the sell function.

Covered call: You hold a stock, and simultaneously sell a call option for that same stock to collect the premium. If the stock price does not exceed the strike price at expiration, the option expires worthless, you keep the premium, and you still hold the stock. If the price goes above the strike price, your stock is bought at the strike price, you get the strike price amount plus the premium you collected, but you give up any gains above that level. The "covered" part of this strategy relies entirely on the stock you hold. Since Binance stock options do not support sell-to-open, you cannot even take the first step.

Cash-secured put: You sell one put option, and set aside enough cash in your account to buy the stock at the strike price if the option is exercised. If the stock price does not drop below the strike price, you keep all the premium. If the price falls below the strike price, you take delivery of the stock at the strike price, and your actual cost basis equals the strike price minus the premium you received. The "secured" part of this strategy relies on the reserved cash. Again, Binance stock options have no sell function, so you cannot execute this strategy.

The shared precondition for both strategies is that you are allowed to open positions as an option seller. Binance's current stock option product design removes this precondition entirely.

If you still want to use your Binance account system to do covered calls or cash-secured puts, what are your realistic options?

There is one workaround, but it is different in nature: Binance's BTC Yield product uses a covered call strategy, executed by the Binance team. Users subscribe to BTCY shares, the underlying strategy systematically sells BTC call options, and distributes the collected premium to users in BTC form or reflects it in the share value. This essentially means you give your crypto to the product team to execute the strategy, you are not acting as the option seller yourself. You cannot customize the strike price, expiration date, or actively manage the position when the strategy moves against you. For people who want to learn how to operate as an option seller, this does not solve the "beginner learning" problem.

As for finding other brokers outside Binance that support stock option selling, that involves new platform account opening and operation processes, which is outside the scope of this article. But note that different jurisdictions have different rules for option seller eligibility, margin requirements and suitability tests, you should confirm that your region is supported before operating on any platform.

A common point of confusion: Binance "not supported now" does not mean "will never be supported"

The wording of Binance's announcement that "the first phase only supports limit orders" implies that the product form may change as the phases progress. But as of the verification date of this article, official documents have not given a launch timeline or conditions for the stock option seller function. Do not prepare or plan operations in advance based on the assumption that "it will open later", because you do not have access to information about the timeline, access thresholds and specific rules. If your requirement is to execute covered calls or cash-secured puts right now, Binance Stock options are not a viable option.

Verification you can do right now

Open the Binance App or web platform, go to any stock K-line page that supports options, and click the "Options" tab. If you see that the order placement area only has a "Buy" direction, or you get a not-supported prompt when you try to switch to sell, that is direct confirmation of the current product status. Descriptions about stock options in the official FAQ will also reflect this trading direction restriction.

If your goal is to learn option seller operations within the Binance ecosystem, crypto option shorting (for BTC/ETH) is the only path you can actually place orders on. But it does not have the stock settlement logic of covered calls or cash-secured puts, the risk structure is different, your margin is monitored in real time, and the liquidation line is triggered based on the ratio of maintenance margin to adjusted equity. Before you start, make sure you understand the margin rules for crypto options, not the covered logic for stock options.