---
description: >-
  Buy call and put options for profits or to hedge your positions. Sell call and
  put options as one of the liquidity providers and earn yield. Enjoy
  non-custodial options trading. Make magic with Hegic.
---

# What Can You Do With Hegic

## **Buy ETH Call Options**

![](https://3046830689-files.gitbook.io/~/files/v0/b/gitbook-legacy-files/o/assets%2F-M3LB8egeaJAQyXbYgxx%2F-M3tiST9vNPL_yJHHkEX%2F-M3tlPOzT2uBOAO_dK8c%2Fethereum24-min-1280x720.jpg?alt=media\&token=0c201dbd-acd8-474e-8cb9-9a0d73ad4ed8)

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&#x20;
* **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**

![](https://3046830689-files.gitbook.io/~/files/v0/b/gitbook-legacy-files/o/assets%2F-M3LB8egeaJAQyXbYgxx%2F-M3tm9rzWftEizr-Ei97%2F-M3tmUa0CuCVrGwwE7pb%2Feth.jpg?alt=media\&token=812b2b4f-e228-437f-8069-dbc22b8881a1)

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

![](https://3046830689-files.gitbook.io/~/files/v0/b/gitbook-legacy-files/o/assets%2F-M3LB8egeaJAQyXbYgxx%2F-M3p8SZFLjrVIwIOoV_Z%2F-M3pFpP_Sy8fngYIer-s%2Feth-diamond.c48a5f76.png?alt=media\&token=09cb58ca-9348-44b9-8781-a850fec8486c)

**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

![](https://3046830689-files.gitbook.io/~/files/v0/b/gitbook-legacy-files/o/assets%2F-M3LB8egeaJAQyXbYgxx%2F-M3p8SZFLjrVIwIOoV_Z%2F-M3pGR392sCmgzZuqjbP%2Fdai.png?alt=media\&token=b6a18a96-8a03-47c6-b32e-9ba6879841ec)

**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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