TradingCalcCovered Call & Protective Put Calculator
OPTIONS · DERIBIT AND BINANCE · 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 or USDT-settled Binance options.
Exchange
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 option leg (Deribit or Binance). 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. Deribit options settle in the underlying coin (not USD), so the math has a subtlety most calculators miss: see below. Binance options settle in USDT and use the flat textbook math. Switch the exchange in the calculator.
The formulas (Deribit, coin-settled)
- 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 (Deribit)
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
The Binance version (USDT-settled)
On Binance the premium is a fixed USDT amount per unit, so the numbers are flat and linear. With S the price at expiry, K the strike, p the premium and E your entry price:
- Covered call value per unit = min(S, K) + p
- Covered call cap = K + p; breakeven = E − p
- Protective put value per unit = max(S, K) − p
- Protective put floor = K − p
- Yield = p / E × 100; annualized = yield × 365 / days to expiry
Covered call: hold BTC bought at 80,000 USDT, sell the 85,000 call for 1,500 USDT, 30 days to expiry. Yield = 1,500 / 80,000 = 1.875%, annualized 1.875% × 365 / 30 = 22.8%. If price is 75,000 at expiry the value is 75,000 + 1,500 = 76,500; if it is 90,000 the coin is called away and the value is 85,000 + 1,500 = 86,500, the cap. Breakeven = 80,000 − 1,500 = 78,500. The premium is read as USDT; no 1 USDT = 1 USD conversion is applied.
Where to go next
Want the theoretical price of the call you are selling, with its Greeks? Use the Black-Scholes calculator.
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.
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Why isn't the covered call's upside capped at a fixed dollar amount on Deribit?
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.
What changes when I pick Binance?
Binance options settle in USDT and one contract is one unit of the underlying (BTC, ETH, gold or silver). The premium is a fixed USDT amount, so a covered call is capped at exactly strike plus premium and a protective put is floored at exactly strike minus premium, with no dependence on the settlement price. The yield is premium divided by your entry price. The calculator does not convert USDT to USD.
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.