Binance has expanded access to a strategy once reserved primarily for professional traders by allowing retail users to sell (write) Ethereum (ETH) options, opening the door to a more passive income-oriented approach within the crypto derivatives market.
According to an official announcement, Binance users can now sell ETH options to enhance risk management and generate upfront premium income. This move reflects growing demand from both retail and institutional investors for more advanced and flexible derivatives instruments.
From Institutional Strategy to Retail Access
The decision follows Binance’s earlier efforts to “democratize” Bitcoin options writing, aligning with the broader surge in interest surrounding BTC, ETH, and ETF-linked derivatives products.
Institutional demand has been especially notable. Earlier this year, options trading volume for BlackRock’s IBIT ETF surpassed native BTC options on Deribit—marking a significant milestone for the crypto derivatives market and underscoring the increasing role of traditional finance players.
“Binance is committed to delivering innovative tools that meet the evolving needs of our users,” said Jeff Li, Vice President of Product at Binance.
“The launch of ETH options writing, alongside major platform upgrades, offers faster execution, greater flexibility, and richer market data—supporting increasingly sophisticated trading strategies in the expanding crypto derivatives space.”
How Selling ETH Options Works
Options are derivative contracts that grant the holder the right, but not the obligation, to buy or sell an underlying asset at a predetermined price within a specific timeframe. Settlement depends on whether the asset’s price moves above or below the strike price at expiration.
While call option buyers benefit from rising prices, option sellers (writers) take the opposite stance. In essence, sellers act as insurers against price appreciation in exchange for an upfront premium, which is recorded as immediate income, regardless of the eventual outcome—provided risk is properly managed.
For years, experienced traders on platforms like Deribit have used this strategy, often pairing it with existing coin holdings to generate steady yield-like returns. Now, Binance users can employ similar strategies by posting collateral to cover potential obligations, subject to completion of a mandatory suitability assessment designed to promote responsible trading.
Liquidity Incentives and Platform Upgrades
To encourage early liquidity, Binance is offering fee discounts of up to 20% for both Makers and Takers among VIP users on newly listed ETH, BTC, BNB, and SOL options contracts—strengthening its competitive position in the rapidly evolving crypto options market.
Beyond product expansion, Binance has also overhauled its options trading infrastructure to attract high-frequency traders and large institutions. The upgraded system significantly improves API throughput and latency, enabling faster order matching during periods of heightened market volatility.
Additionally, Binance has expanded the range of available strike prices, giving traders greater precision to execute advanced hedging and speculative strategies. The platform now integrates enhanced WebSocket data streams, providing deeper market insights—an essential feature for professional-grade analysis and decision-making.
Conclusion
By opening ETH options selling to retail users and reinforcing its platform with institutional-level infrastructure, Binance is further cementing its role as a leading force in crypto derivatives innovation. As demand for yield-generating and risk-managed strategies grows, ETH options writing may become an increasingly attractive tool for sophisticated traders seeking diversified income streams.
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