Covered Call & Protective Put Calculator
OPTIONS · DERIBIT BTC/ETH · YIELD & INSURANCE ON COIN YOU HOLD
Annualized yield (covered call) or insurance cost (protective put) plus position value at any scenario price, for coin-settled Deribit BTC/ETH options.
Underlying
You hold BTC and sell a call against it for yield — capped upside above the strike, cushioned downside below it.
What is a covered call vs. a protective put?
Both combine holding the underlying coin with one Deribit option leg. A covered call sells a call against coin you hold, collecting premium for yield — capping your upside above the strike. A protective put buys a put on coin you hold, paying premium for insurance — flooring your downside below the strike. Because Deribit options settle in the underlying coin (not USD), the math has a subtlety most calculators miss: see below.
The formulas
- Covered call, not called (S ≤ K): value = (1 + premium) × S
- Covered call, called away (S > K): value = K + premium × S
- Protective put, not exercised (S ≥ K): value = (1 − premium) × S
- Protective put, exercised (S < K): value = K − premium × S
- Annualized yield/cost = (premium × 100) × 365 / days to expiry
The coin-denomination subtlety
Because the premium is paid or received in coin, its dollar value depends on the price at the time you convert it — not a fixed number the way a textbook USD-settled option assumes. For a covered call, that means the "cap" above the strike still grows slightly with price (K + premium × S, not a flat K + premium). For a protective put, the floor works out cleaner: the true worst-case value across every possible settlement price is exactly strike × (1 − premium), occurring right at the strike itself.
Worked example
Covered call: hold BTC bought at $80,000, sell a $85,000-strike call for 0.02 BTC premium, 30 days to expiry:
- Annualized yield = 2% × 365/30 = 24.3%
- If not called (price stays at $75,000): value = 1.02 × 75,000 = $76,500
- If called away (price hits $90,000): value = 85,000 + 0.02 × 90,000 = $86,800
Where to go next
Betting on volatility instead of income or insurance? Use the Straddle & Strangle Calculator. Just want a single option leg's payoff, no underlying position? Use the Options Payoff Calculator.
Use via API or MCP
This calculation is available as a deterministic API call — useful for bots or AI agents sizing yield or insurance strategies without re-deriving the coin-settlement math themselves.
Why isn't the covered call's upside capped at a fixed dollar amount?
Because the premium is paid in coin, its dollar value scales with the settlement price when you convert it back — so the cap (strike + premium × settlement price) grows slightly with price, unlike a textbook USD-settled covered call's flat cap.
What is the "guaranteed floor value" on a protective put?
It's strike × (1 − premium) — the true minimum value your position can have across every possible settlement price, not just an estimate at one scenario. It occurs exactly at the strike price itself; value is actually slightly higher on both sides moving away from the strike.
Why does the annualized yield not depend on a scenario price?
The static yield is just the premium collected divided by the coin held, annualized by 365/days — it's known the moment you open the trade and doesn't depend on where price ends up. It's the standard "covered call yield" metric traders quote.
Can I model multiple contracts at once?
Yes — the quantity field scales the coin held and the calls/puts sold 1:1 against it. The annualized yield/cost percentage itself doesn't change with quantity.