> For the complete documentation index, see [llms.txt](https://hegic.gitbook.io/start/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://hegic.gitbook.io/start/make-magic-with-hegic.md).

# What Can You Do With Hegic

## **Buy ETH Call Options**

![](/files/-M3tlPOzT2uBOAO_dK8c)

An **ETH call option** is option contract giving the owner the right **to buy** a specified amount of ETH at a fixed price within a certain time.

For example, a single ETH call option contract may give a holder the right to buy \
**1 ETH at $150** up until the expiry date in four weeks. If they paid $10 for this right and during the period of holding the price of ETH, say, rises to $200, a holder can excercise their contract (buy 1 ETH at $150) and earn $40 in net profits.

* **Potential Profit:** Unlimited as the level of ETH increases 
* **Potential Loss:** Limited to premium paid for ETH call option contract

Learn more about call options from the **"What is a Call Option?"** section that can be found in the **Learn Options Basics** part of this educational document.

## **Buy ETH Put Options**

![](/files/-M3tmUa0CuCVrGwwE7pb)

An **ETH put option** is option contract giving the owner the right **to sell** a specified amount of ETH at a fixed price within a certain time.

For example, a single ETH put option contract may give a holder the right to sell \
**1 ETH at $150** up until the expiry date in four weeks. If they paid $10 for this right and during the period of holding the price of ETH, say, falls to $100, a holder can excercise their contract (sell 1 ETH at $150) and earn $40 in net profits.

* **Potential Profit:** Substantial and increases as the level of ETH decreases
* **Potential Loss:** Limited to premium paid for ETH put option contract

Learn more about call options from the **"What is a Put Option?"** section that can be found in the **Learn Options Basics** part of this educational document.

## Sell Call Options and Earn ETH

![](/files/-M3pFpP_Sy8fngYIer-s)

**Provide ETH to the liquidity pool and start earning up to 29.25% APY (est.).** Your ETH alongside with ETH provided by other LPs will be used for selling call options.

Call options buyers will be paying **premiums in ETH** for the right to buy ETH at the liqudity pool at a fixed price during a certain period. Premiums are distributed among all of the liquidity providers according to their share in the pool. After providing ETH to the pool, a LP receives **writeETH** tokens (ERC20) that can be converted back into ETH in case they want to leave the pool.

## Sell Put Options and Earn DAI

![](/files/-M3pGR392sCmgzZuqjbP)

**Provide DAI to the liquidity pool and start earning up to 29.25% APY (est.).** Your DAI alongside with DAI provided by other LPs will be used for selling put options.

Put options buyers will be paying **premiums in DAI** for the right to sell their ETH to the liqudity pool at a fixed price during a certain period. Premiums are distributed among all of the liquidity providers according to their share in the pool. After providing DAI to the pool, a LP receives **writeDAI** tokens (ERC20) that can be converted back into DAI in case they want to leave the pool.

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