Binance Expands Access to Ether Options Writing, Bringing Passive-Like Income Strategies to Retail Traders

Binance, the world’s largest cryptocurrency exchange by trading volume, has expanded access to advanced derivatives by enabling ether (ETH) options writing for all eligible users. The move allows traders to sell ETH options, a strategy previously dominated by professional and institutional participants, opening new opportunities to generate premium income while managing market risk.

According to a press release shared with CoinDesk, Binance introduced ETH options writing in response to rising demand from both retail and institutional investors for sophisticated crypto derivatives. By writing options, users can earn upfront premiums, often described as a passive-like income, in exchange for taking on the obligation to buy or sell ether at a predetermined price if the option is exercised.

This development builds on Binance’s earlier efforts to democratize bitcoin options writing and reflects surging interest in BTC, ETH, and ETF-linked derivatives products. Institutional demand for crypto options has accelerated in recent years, highlighted by BlackRock’s IBIT options surpassing Deribit’s native BTC options in trading volume earlier this year, signaling a major shift in the crypto derivatives landscape.

Options contracts give buyers the right, but not the obligation, to buy or sell an asset at a set price before expiry. While buyers profit from favorable price movements, sellers act as insurers against those moves, collecting immediate premium income. On platforms like Deribit, experienced traders have long used this approach by writing calls or puts against existing crypto holdings to boost yield.

Binance users can now apply similar strategies with ETH options by posting margin as collateral. Access is subject to a mandatory suitability assessment designed to promote responsible derivatives trading. To accelerate liquidity, Binance is offering a 20% discount on both maker and taker fees for VIP users across newly listed ETH, BTC, BNB, and SOL options contracts.

Alongside the product launch, Binance has upgraded its options trading platform with higher API throughput, lower latency, expanded strike prices, and enhanced WebSocket market data. These improvements aim to support high-frequency traders and institutions while reinforcing Binance’s position in the increasingly competitive crypto options market.