On August 4, according to CoinDesk, Binance announced on Monday that it would open Bitcoin "option writing" functionality to all users, responding to the strong growth in retail investors' demand for more strategic and complex trading tools.
Options are derivative contracts that give the buyer the right to buy or sell the underlying asset at a predetermined price on or before a specific date. Among these, call options grant the right to buy, representing an optimistic market view; while put options provide downside protection.
"Option writing" refers to selling call or put options, similar to providing "insurance" for the rise or fall of the underlying asset. The seller of options (i.e., the writer) can receive a premium paid in advance as compensation.
