[Trading Practice] Say goodbye to the "Gambler" identity and become the "Casino" owner: In-depth analysis of Binance's new features and a practical guide for options sellers

Preface: An Important Piece of the Crypto Financial Infrastructure Puzzle

In the past two days, a seemingly insignificant event has occurred in the crypto world that could actually change the fate of many retail traders—Binance has officially upgraded its options platform, allowing ordinary users to “write options” (Short Options/Shorting Options).

Many people may not have realized what this means yet. Previously, most exchanges’ simple options products only allowed users to be “buyers.” In other words, you could only spend money to buy a lottery ticket—either hit the jackpot (big gains) or the ticket becomes worthless (zero). Essentially, this is a high-odds, low-probability “gambling” behavior.

Opening the “seller” permission means you can stand on the other side of the table and become the “lottery seller,” or “market maker.”

On Wall Street, institutional investors often don’t rely on precise predictions of market ups and downs to survive, but rather earn steady premiums by “selling volatility.” This is known as the “rent collection” model.

This in-depth analysis will break down: Why is “selling options” a necessary course for retail traders to upgrade to professional traders? How can you leverage this feature on Binance to build a “guaranteed profit” strategy? And under what circumstances could you lose everything because of this feature?

Chapter 1: Mindset Shift—From “Hunter” to “Farmer”

1.1 Buyer vs Seller: The Game of Mathematical Expectation

Before diving into practical operations, we must understand the underlying logic.

Option Buyer (Long Option):

Mindset: Hunter. Behavior: Pays a premium, betting on a big move in the future. Profit & Loss Model: Limited loss (only the premium), unlimited profit (theoretically). Win Rate: Very low. Because you need to predict not only the direction but also the timing, and beat “time decay.”

Option Seller (Short Option):

Mindset: Farmer/Landlord. Behavior: Collects the premium from the buyer, commits to buy or sell at a certain price in the future. Profit & Loss Model: Limited profit (only the premium), potentially large loss (if naked short). Win Rate: Very high. As long as the market doesn’t move extremely, or time passes, you can profit.

1.2 Core Secret: Time is the enemy of buyers and the friend of sellers

In the Black-Scholes options pricing model, there is a Greek called Theta (θ). It represents the “time decay” of the option’s value.

If you buy a call option, and the price of the asset remains flat, each day your option’s value will automatically shrink due to Theta. At expiration, if the price hasn’t risen above the strike, the option becomes worthless.

The core profit logic for sellers is “eating Theta.” As long as the market remains flat, or moves slightly up or down, or even if it doesn’t rise fast enough, sellers profit. That’s why institutions prefer to be sellers—because in this uncertain market, “time passing” is the only certainty.

Chapter 2: Practical Strategy One—Covered Call: The “Vampire” Enhancement for Hodlers

This is one of the best strategies for retail traders, with minimal risk, and a favorite of Buffett. If you are a long-term hodler of BTC or ETH, you must learn this strategy.

2.1 What is a Covered Call?

Simply put: You hold the spot (e.g., 1 ETH), and sell a call option with a strike price higher than the current price.

Your role: You have the asset, and you promise the market: “If ETH rises to a certain high price, I am willing to sell my ETH to you.” Your profit: The counterparty pays you a premium now for the “right to buy” at the strike.

2.2 Scenario Simulation (Mathematical Testing)

Assuming the current environment:

Date: January 17, 2026 ETH current price: $3,000 Action: You hold 1 ETH, and sell a “1-month expiry, strike at $3,500” call option on Binance. Premium income: Assume the market quotes it at $100 ( which equals 0.033 ETH).

What happens after one month?

Scenario A: Crash (ETH drops to $2,000)

Result: The option expires worthless; no one will buy at $3,500. Your account: You still hold 1 ETH, but this ETH has shrunk in value. However! You earned the premium $100 . This acts like an airbag, reducing your loss. Conclusion: Outperform simply holding the coin.

Scenario B: Sideways or slight rise (ETH between $3,000 and $3,499)

Result: The option still expires worthless. Your account: The coin remains in your possession, possibly with a slight gain. Meanwhile, you earned an extra $100. Conclusion: Enhanced income! This is the so-called “rent collection.” Without selling the option, you get nothing this month.

Scenario C: Big rally (ETH rises to $4,000)

Result: The option is exercised. You must sell ETH at $3,500 as promised. Your account: You sell ETH, receiving $3,500 plus the premium $100 , totaling $3,600. Conclusion: You profit ($3,000 → $3,600), but you missed out on the full market rally (which was $4,000). This is the only risk of covered call: the “missed upside” risk.

2.3 Why is this a magic trick?

For hodlers, $3,500 is already your psychological take-profit point.

If it doesn’t rise: You keep the coin and earn interest (premium). If it rises: You take profit and earn extra interest. Either way, it’s comfortable—this is the right mindset for investing.

Chapter 3: Practical Strategy Two—Cash-Secured Put: “Bottom-Fishing” Like Buffett

You want to buy Bitcoin at $90,000, but the current price is $95,000. What do ordinary retail traders do? Place a limit buy order at $90,000 and wait foolishly. What do smart traders do? Sell a Put.

3.1 Strategy Logic

Selling a Put (a bearish option) means: You promise the market, “If the price drops to $90,000, I will buy it with cash.”

Because you provide this “insurance,” the market pays you a premium.

3.2 Scenario Simulation

BTC current price: $95,000 Your funds: You have 90,000 USDT. Action: Sell 1 BTC put with a strike at $90,000, expiring in 1 month. Premium income: Assume $2,000.

What happens after one month?

Scenario A: Price doesn’t fall (BTC stays at $92,000 or rises)

Result: No one will sell you BTC at $90,000. The option expires worthless. Profit: You didn’t buy at the bottom, but you earned $2,000 free! Thought: If your limit order doesn’t fill, you get nothing; but selling a put that doesn’t execute gives you cash flow. The annualized yield could reach 20%-30%.

Scenario B: Price drops below $85,000

Result: The option is exercised. You must buy 1 BTC at $90,000. Cost analysis: You paid $90,000 but received $2,000 premium, so your effective cost is $88,000! Conclusion: You successfully bottom-fished at a lower cost than just placing a buy order at the market.

3.3 The True “Bottom-Fishing Magic”

This is Buffett’s approach to buying Coca-Cola. If you’re willing to buy an asset at a certain price, don’t just place a limit order—sell a put. Either buy at a lower price or earn high cash returns.

Chapter 4: The Ultimate Cycle—“The Wheel Strategy”

Combine the above two strategies to form the most classic cash flow perpetual machine in stocks and crypto.

Hold USDT: Sell OTM (out-of-the-money) puts to earn premiums. If not exercised: continue selling puts, keep earning cash. If exercised: buy BTC (spot). Hold BTC: then sell OTM calls (covered call). If not exercised: continue selling calls, keep earning coin-based interest. If exercised: your BTC is sold, back to USDT. Repeat the cycle.

This forms a perfect closed loop. As long as you are bullish on BTC long-term, but expect some volatility, this strategy allows you to keep “collecting rent” like printing money, bouncing between USDT and BTC.

Chapter 5: Binance’s New Features—Details and Risks (A Must-Read Life-Saving Guide)

While the strategy sounds beautiful, operating in Binance’s high leverage, high volatility environment involves some core details and huge risks that must be clarified.

5.1 Margin System

Trading as a seller on Binance isn’t free—you need to pledge collateral.

Cross Margin Mode: Binance usually uses a unified account mode. This means your USDT, BTC, and even ETH in the futures account can serve as collateral. Risk point: If your sold options go the wrong way (e.g., selling a call and the price surges), your floating loss can grow rapidly. If margin is insufficient, your spot holdings may be forcibly liquidated! Remember: When doing covered calls, ensure the system recognizes your spot holdings to avoid most margin requirements.

5.2 Absolute No-Go Zone: Naked Calls

This is the fastest way for retail traders to go bankrupt.

What is a naked call? You don’t hold BTC but sell a BTC call option. Consequence: If BTC doubles in a month like early 2024, your loss is theoretically unlimited. Example: You sell a $50,000 call, and the price rises to $100,000. You owe the market $50,000. If it rises to $200,000, you owe $150,000. Warning: Unless you are a top-tier trader, always only do “covered” (own the asset before selling call), never “naked” selling.

5.3 Liquidity Traps

Binance’s options volume is large, but compared to veteran exchanges like Deribit, some strike prices may lack depth in the order book.

Phenomenon: The bid-ask spread is huge. Practical advice: When selling, avoid market orders; always use limit orders. Calculate a reasonable price and patiently wait for execution.

5.4 Implied Volatility (IV) Selection

When is the best time to sell options? During market panic or extreme euphoria.

IV (Implied Volatility): An indicator of option pricing. High IV: e.g., before elections or ETF decisions. Market sentiment is intense, options are overpriced—selling then is like selling umbrellas in a rainstorm, the price is highest. Low IV: When the market is dull and premiums are low, selling options is less cost-effective; better to wait.

Chapter 6: Deep Summary and Psychological Preparation

6.1 Suitable for:

Hodlers: Have large spot holdings, not planning to sell, want to earn coin-based yields. Fiat-based investors: Find 5% annualized returns too low, want to earn 15%-30% annualized by selling puts. Range traders: Expect the market to stay stable or only fluctuate mildly in the coming months.

6.2 Psychological Traps

The hardest part of being a seller isn’t the technique, but greed.

After earning money 10 times in a row by selling puts, you might think it’s “free money.” Then you start leveraging more, selling puts beyond your capacity. Suddenly, a black swan event (like FTX’s collapse) hits, and the market drops 30% in a day. Your margin is instantly wiped out. Your previous 10 profits are wiped out in one go, or you even owe money to the exchange.

6.3 Core Mindset

“Being a seller is like being an insurance company, not a gambler.” Insurance companies profit from probabilities and the law of large numbers, not betting that a disaster won’t happen.

Strictly control leverage: Always assume the coin price could halve tomorrow—can your position withstand it? Accept “selling a miss”: When doing covered calls, if the price skyrockets, smile and wish the buyer well, because you’ve already earned what you should. Be patient: Sellers earn time value—slow money.

Conclusion: The Essential Path for Retail Traders to Advance

Binance’s new options selling feature marks a further maturity of the crypto derivatives market. For retail traders, it’s an excellent opportunity to shift from “being harvested” to “harvesting time value.”

But tools are neutral; only a well-armed mind, equipped with knowledge, can wield them effectively.

If you can understand this article and strictly follow the discipline of “covered calls” and “cash-secured puts,” congratulations—you are no longer that rookie chasing candles and FOMO, but a mature investor who understands how to build a moat with financial mathematics.

In today’s market, $95,000 BTC may seem intimidating. Since you’re hesitant to chase the high, why not sell a put at this level and quietly wait for the market to send you a “salary”?