What selling options pays
CryptoKeyhole works out the annualised yield of selling covered calls and cash-secured puts on bitcoin and ether from our own fitted volatility surface, by strike and expiry, updated every ten minutes.
Plus shows every expiry and strike in this grid; Pro adds the raw figures through the API.
Compare plansHow these yields are worked out
A covered call means you hold the coin and sell a call against it: you keep the premium, and give up any rise above the strike. A cash-secured put means you set aside the strike in cash and sell a put: you keep the premium and buy the coin at the strike if the price ends below it.
Each cell takes the listed strike nearest that distance from the money, prices it with Black-76 on its expiry’s forward at the implied volatility from our ten-minute surface of Deribit’s chain, and divides the premium by the coin’s index price (calls) or by the strike (puts). It is annualised simply, by 365 divided by the days left, so a short expiry’s rate assumes it could be repeated at the same price all year. Selling options gives up upside or takes on downside: the figure is income, not profit.