Half a month ago, I sold 2000 ETH on Binance for a Call option expiring on 12.26 with a strike price of 5000. At that time, I was in a hurry to build my position, so I only prepared half of the margin, which was like adding a bit of leverage, but the overall risk was not high.
Currently, the margin for these 2000 ETH is fully in place, which means it’s a fully covered Call. At the same time, I converted all my ETH into WBETH, meaning that before 12.26, I can also enjoy an additional layer of Staking rewards.
It’s worth mentioning that Binance's options liquidation mechanism is different from Deribit; the seller experiences "manual liquidation" instead of an automatic trigger, which gives you a buffer time for a Margin Call. If you use the covered call strategy, converting ETH into WBETH before selling the Call, the risk is basically controllable. This is also why I believe Binance has an advantage over Deribit in the back-to-back selling Call strategy.
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