A dual-investment product and a covered call (or cash-secured put) you write yourself onchain share the same payoff. Custody, pricing, lockup, and who keeps the residual premium do not. Dual investment is the packaged version, sold as Dual Investment on Binance and OKX and as Dual Asset on Bybit.
Dual Investment Explained maps the two strategies: Sell High ≈ covered call and Buy Low ≈ cash-secured put. Here the comparison is that package versus writing the same trades onchain — through a vault, an automated market maker (AMM) or a request for quote (RFQ). Primer: Crypto options explained.
Side by side
| Dual investment (exchange product) | Onchain options (you sell them yourself) | |
|---|---|---|
| The trade | You sell a call or a put | You sell a call or a put |
| What you see | Target price, date and APR | Strike, expiry, premium, settlement method |
| Pricing | The exchange sets the menu | Order book, vault auction, AMM or RFQ |
| Who keeps the rest of the premium | The exchange | You, after protocol fees |
| Who holds your funds | The exchange | A smart contract (escrow) |
| Early exit | Usually locked to settlement | Depends on the platform, and on whether a market or a quote exists to buy the option back |
| Assets | The exchange's list | Whatever a trading desk will quote |
| Settlement | The exchange's rules, at a fixed time | Delivery of the asset or payment of the difference, as agreed |
Who holds your funds, and who is on the other side
Dual investment is run by a centralized exchange. The exchange holds your deposit, sets the withdrawal rules and decides where the product is offered. It is also the other side of your trade, so you depend on that one company.
Selling the option onchain puts your funds in an escrow you can inspect. It does not remove risk. It replaces reliance on a company with reliance on software and, sometimes, a price feed. The Overcast docs cover how to weigh that.
How the premium is set
This is the largest practical difference.
- Dual investment shows an APR. Behind it is an options premium the exchange earns on the other side of your trade. You receive a share of that, presented as yield. You do not see competing quotes.
- Order-book options show buy and sell prices. Sellers accept the best buy price.
- Vaults sell on a schedule into an auction. Simple to use; the vault chooses the terms.
- RFQ lets you request quotes for exact size, strike, expiry, and settlement. Counterparties compete; you accept one or none.
If you need a premium for specific terms, RFQ answers that directly. Dual investment answers a different question: what yield the platform will pay for a given target and date. Background: RFQ vs Order Book.
Lockup and what the APR really means
Dual investment locks funds to settlement; Bybit's terms, for example, do not allow redemption before the settlement date. A headline 100% APR on a seven-day product is about 1.9% of the amount for that week. Annualizing short-term option income makes the number look like a savings rate; it is not.
Onchain, closing early means buying the option back. On an order book that is possible whenever there is a market. On an RFQ platform it depends on a desk quoting the close and on the protocol's rules. Either way it has a price and is not a free exit.
Settlement clarity
Dual investment settles at a time the exchange sets. You get crypto or stablecoins per the target rule, plus yield in the delivered asset.
Onchain, the settlement rule is part of the option: either the asset is delivered, or the difference in value is paid. For tokenized stocks, which price is used matters as much as the method; see tokenized stock options.
Who each path fits
| You care most about… | Prefer |
|---|---|
| One-tap simplicity, with the exchange holding your funds | Dual investment |
| Competing premiums on your exact terms | RFQ onchain |
| Always-on quotes without requesting | Order book or AMM |
| Passive scheduled selling | Options vault |
There is no universal winner. Dual investment is an option you sell, behind a simpler screen. Selling it yourself onchain is the same trade with more control — and more responsibility.
Writing the same trade on Overcast
Overcast is built for people who want to sell these options directly: request quotes from trading desks, collect the premium up front, and settle onchain from escrow. It does not show an APR. Product overview: How Overcast works.
FAQ
Is dual investment the same as a covered call?
The Sell High strategy is economically a covered call; the Buy Low strategy is economically a cash-secured put. Custody, pricing, and how much of the premium you keep differ from writing the option yourself.
What are the risks of dual investment vs writing onchain?
Shared: capped upside or assignment, full downside on collateral you still hold. Dual investment adds platform custody and APR packaging. Onchain adds the risk of software faults and bad price feeds, and requires you to choose the terms.
Can I get better premium onchain?
Sometimes, when trading desks compete for your exact terms. Sometimes not, when an exchange prices its menu generously to attract customers. The only honest method is to compare the premium (or the yield converted to a premium) for the same strike, expiry and size.
Sources
- Dual Investment, Binance
- What Is OKX Dual Investment?, OKX Learn
- Introduction to Dual Asset, Bybit Help Center
Next reading
Risk disclosure and disclaimer
The content on this blog is published by Overcast for general information and education only. It does not constitute financial, investment, legal, tax or accounting advice, and it is not an offer, solicitation or recommendation to buy, sell or hold any asset or to use any product or strategy. It does not take into account your objectives, financial situation or needs. Consult a qualified professional before making any investment decision.
Writing options involves substantial risk. A covered call limits your upside and leaves you fully exposed to declines in the underlying asset. A cash-secured put can oblige you to buy an asset at a price above its market value at expiry. Premiums, yields and APRs shown are illustrative or historical, are not guaranteed and do not predict future results. Crypto assets and tokenized securities are highly volatile and may lose some or all of their value. Smart contracts may contain vulnerabilities, and onchain transactions are irreversible.
Products, assets and features mentioned may not be available in your jurisdiction. You are responsible for complying with the laws that apply to you. Information may be incomplete, contain errors or become outdated; Overcast makes no warranty as to its accuracy or completeness.
Overcast is in early access. Features, supported assets and availability described here may change before or after launch.
Read more
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Dual Investment Explained: Covered Calls and Cash-Secured Puts
Dual investment is a packaged exchange product with two strategies: Sell High, which works like a covered call, and Buy Low, which works like a put you sell.