overcast.xyz lets you earn a premium on assets you already hold. You sell a covered call or a cash-secured put on tokenized stocks or crypto, professional trading desks compete to offer you the best premium, and you are paid up front. Trades settle onchain, so your assets sit in an escrow account under the option's rules instead of with an exchange.
Overcast at a glance
| Fact | Detail |
|---|---|
| What it is | A marketplace for selling covered calls and cash-secured puts, built on a blockchain protocol |
| What you can use | Tokenized stocks (such as NVDA, TSLA, AAPL and META), BTC, ETH and SOL |
| How the price is set | You ask for quotes, and trading desks compete on the premium for your exact terms |
| When you are paid | Up front, when you accept a quote |
| Where your assets are | Locked in escrow onchain, not held by an exchange |
| Minimum trade size | None at present |
| Status | Early access; join the waitlist |
| For developers | docs.overcast.xyz |
How it works in four steps
- Deposit. Put the asset you want to earn on into your Overcast escrow account. For a put, deposit stablecoins instead.
- Ask for quotes. Choose the asset, the amount, the strike price and the expiry date. This is a request for quote, or RFQ.
- Accept a quote. Trading desks answer with a premium. Pick one. Your asset is locked and the premium is paid to you in a single transaction.
- Expiry. If the buyer does not use the option, your asset is released back to you. If the buyer does, the trade completes at your strike price.
The full walkthrough is in How to sell a covered call on Overcast. Why quotes instead of an order book: RFQ vs order book.
The two trades
| Trade | You deposit | You agree to | You earn |
|---|---|---|---|
| Covered call | A tokenized stock, BTC, ETH or SOL | Sell it at the strike if the price rises above it | The premium |
| Cash-secured put | Stablecoins such as USDC | Buy the asset at the strike if the price falls below it | The premium |
If options are new to you, start with Crypto options explained.
Why tokenized stocks are a focus
A listed US equity option controls 100 shares, which puts covered calls on expensive stocks out of reach for most holders. Tokenized shares are divisible, and a quote needs no fixed contract size, so a covered call or a cash-secured put can be written on the number of shares you actually hold or want. The trade-offs, including the risks a token issuer adds, are in Tokenized stock options. The structures themselves are explained in What are tokenized stocks?.
What is different from an exchange
| Question | On a traditional options exchange | On Overcast |
|---|---|---|
| Who holds my assets? | The broker or the exchange | An escrow account onchain that moves only by the option's rules |
| How do I know the other side can pay? | A clearing house guarantees it | The collateral is locked before the option exists |
| Who sets the price? | Market makers on an order book | Trading desks that quote your exact terms |
Onchain does not remove trust. It moves trust from a company to software. You rely on the protocol's code and, for some settlement methods, on an outside price feed. The Overcast docs cover the current security model.
What Overcast is not
- Not a platform for leveraged trading, such as a perpetual-futures exchange.
- Not a "deposit and forget" vault that sells options for you on a fixed schedule. That category is compared in Onchain options explained.
- Not a fixed-rate product. The premium depends on volatility, strike, expiry and which desks quote.
Safety and status
Overcast is in early access, and the product is still changing. For how to think about the risks, see the Overcast docs.
How to try it
For developers and trading firms
This blog explains the product in plain language. Everything technical lives in the Overcast docs: connecting through the API and SDK, the full flow of a request for quote, and the settlement methods.
If you read the docs, you will meet a few terms this blog avoids:
| In the docs | In plain words |
|---|---|
| Maker | The seller of the option, who locks the collateral |
| Taker | The buyer of the option, who pays the premium |
| RFQ | Request for quote: asking trading desks to price your trade |
| Collateral | The asset that stays locked for the life of the option |
| Settlement method | The rule for what changes hands if the buyer uses the option |
| Oracle | An outside price feed that the protocol reads |
FAQ
What does the product actually do?
A marketplace for selling covered calls and cash-secured puts on tokenized stocks and crypto. Trading desks compete on the premium, the premium is paid to the seller up front, and trades settle onchain.
How is the premium set?
By request for quote. You state your terms and trading desks answer with a premium. There is no public order book.
Who holds the collateral?
No exchange holds it. Your collateral is locked in an escrow account onchain and moves only according to the terms of the option. The risk of a software fault still applies.
What can I write against today?
Tokenized stocks such as NVDA, TSLA, AAPL and META, and the crypto assets BTC, ETH and SOL. Coverage depends on which assets trading desks are willing to quote.
Is there a minimum trade size?
Not at present. A position can be as small as a desk is willing to quote, which is why a covered call does not need a 100-share block.
Can trading firms and developers connect directly?
Yes, through an API and SDK. The docs explain how to get access.
Sources
- Primer: Equity (stock and ETF) Options, The Options Clearing Corporation
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
How to Sell a Cash-Secured Put on Overcast
How to sell a cash-secured put on Overcast in four steps: choose the asset, set terms, request quotes, accept one and get paid up front.
How to Sell a Covered Call on Overcast
How to sell a covered call on Overcast in four steps: choose the asset, set terms, request quotes, accept one and get paid up front.
Tokenized Stock Options: Covered Calls and Puts Explained
Tokenized stock options explained: how to write covered calls and cash-secured puts on tokenized shares without the 100-share minimum, and what the issuer adds.