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Options-backed credit line

Borrow USDC against covered positions without closing them, sized to the position's protected floor.

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Borrow USDC against covered positions without closing them.

Sized to the floor, so no liquidator

The credit line is sized to the position's protected floor. A collar, for example, has a known minimum value set by its put. Because the loan never exceeds what the floor guarantees, the credit line never needs a liquidator either.

Put strike (floor)Call strike (cap)BreakevenProfitLoss0Price at expiry →FloorCapBreakevenProfitLoss0Price at expiry →
The put strike is the protected floor. The credit line is sized against it.
Share + written call + bought putShare alone

What it's for

  • Access cash without giving up a position you want to keep.
  • Keep earning streamed premium on the position while you borrow.