To sell a cash-secured put on Overcast, you ask trading desks to quote a premium for a strike and expiry you would buy at, and accept the quote you like. The premium is paid to you in the same transaction. At expiry you either get your stablecoins back or you buy the asset at the strike.
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What is a cash-secured put?
A cash-secured put is a put option you sell while posting enough stablecoins to buy the asset at your strike if assigned. Buyers pay you a premium for the right to sell you that asset at the strike by expiry. If the price finishes above the strike, you keep the premium and your stablecoins unlock; if it finishes below and the put is exercised, you buy at the strike. Full primer: Crypto cash-secured puts.
The trade in one example
Tokenized AAPL trades at $330. You would be happy to buy 10 shares at $310, so you ask for quotes on a one-month put with a $310 strike and post 10 × $310 = $3,100 USDC.
Three trading desks answer with $2.40, $2.55 and $2.70 per share. You accept $2.70 and receive $27 straight away.
| AAPL at expiry | What happens | You end up with |
|---|---|---|
| Above $310 | The buyer does not use the option | Your $3,100 USDC, plus the $27 |
| Below $310 | The buyer uses the option | 10 shares bought at $310, plus the $27 |
In both cases the premium is yours. What you take on is the obligation to buy at $310 even if the share is cheaper by then.
A listed put would need 100 shares of collateral for this trade, about $31,000. Overcast has no minimum trade size at present, so 10 shares are enough if a desk quotes them.
What you need
- An early-access Overcast account.
- Stablecoins (such as USDC) equal to the full purchase at your strike.
- A strike price you would really be happy to buy at.
Four steps
1. Choose the asset and the trade. In the app, pick the asset you are willing to buy, then choose a cash-secured put.
2. Set the amount, strike and expiry. The strike is the price you would be content to pay. The expiry is how long your stablecoins stay committed. If you are unsure, Crypto cash-secured puts explains how to choose both.
3. Request quotes. Trading desks reply with a premium for exactly your terms. Quotes are valid for a short time, so compare them while they are on screen. You do not have to accept any of them.
4. Accept one. Your stablecoins are locked and the premium is paid to you in one transaction. There is no waiting for the other side to pay.
After expiry, come back and collect. If the buyer did not use the option, you get your stablecoins back. If the buyer did, you receive the asset (or settle per the quote) instead.
This walkthrough is for the Overcast web app. The same flow is also available programmatically — see the Overcast docs and getting started.
What you receive if the price ends below your strike
How an option settles is part of its terms, and you see it in the quote.
| Settlement | What the buyer does | What you receive |
|---|---|---|
| Delivery (the default) | Delivers the asset and takes the full strike amount | 10 shares in the example |
| Delivery with a price check | The same, but only when a price feed confirms the price is below the strike | 10 shares in the example |
| Cash-style | Takes only the profit, paid out of your stablecoins | What is left of your USDC |
In the example with cash-style settlement and AAPL at $290, the buyer's profit is $200. You would keep $2,900 of the original $3,100, plus the $27 premium.
Before you accept
- The strike is a price you would really buy at.
- You can leave the stablecoins locked until expiry.
- You are aware of all potential outcome scenarios.
- You have compared the quotes.
FAQ
When do I receive the premium?
When you accept a quote. Your stablecoins are locked and the premium is paid in the same transaction.
How much collateral do I need?
Enough to buy the full amount at the strike. For 10 shares at a $310 strike that is $3,100, before any platform buffer.
Do I need collateral for 100 shares on a tokenized stock?
No. There is no minimum trade size at present, so you can size the put to the number of tokenized shares you want to own, provided a desk quotes that size.
Can I get my stablecoins back before expiry?
Not while the option is live. The collateral stays locked until expiry, and you collect afterwards.
What if none of the quotes is good enough?
Accept none. The request expires, or you cancel it, and your deposit stays in your account.
Is this available to trading firms and through an API?
Yes. Desks, funds and developers can do the same thing in code. That is covered in the Overcast docs, starting with getting started.
Next reading
- Crypto cash-secured puts — how to choose strike and expiry
- How to earn yield on USDC by selling puts — puts vs lending
- Tokenized stock options — what a tokenized stock adds to your risk
- How Overcast works
- How to sell a covered call on Overcast — the matching trade when you already hold the asset
- RFQ vs order book
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.
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