How do Cash-Secured Puts work?

A Cash Secured put is a simple and powerful tool at your disposal.

• You hold stable coins equal to the potential purchase price (strike × quantity) of a crypto asset like HYPE or WBTC

• You sell a put option: the right (although, not an obligation) for someone else to sell you their asset at a chosen price (strike) in the future.

• For selling that right, you earn an upfront premium (yield), regardless of the option being exercised or not.

• If the asset stays above the strike price, you keep both the premium and your cash

• If the price falls below the strike price, you buy the asset at the strike price using your secured cash, but you still keep the premium which reduces your effective purchase price.

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Example: Selling a Cash-Secured Put with a $100 Strike Price

Scenario	Price at Expiry	What Happens	What You Earn
Below Strike price	$95	Buy asset at $100 with secured cash	Premium (reduces cost basis to $100 - premium)
At the strike price	$100	Keep asset + premium	Premium
Above strike price	$110	Keep cash + premium	Premium