> For the complete documentation index, see [llms.txt](https://docs.callput.app/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.callput.app/traders/instruments-strategies-and-collateral.md).

# Instruments strategies and collateral

## Instruments, strategies, and collateral

Callput supports request-based options strategies on feed-listed markets. Live crypto markets are BTC and ETH. Synthetic stock and ETF option rows can be available for TSLA, QQQ, SPY, EWY, NVDA, COIN, SKHY, SPCX, and MU. Confirm the current expiry and rows before every trade.

Callput stock and ETF options are synthetic onchain options. They reference market prices but do not represent broker-listed options, securities accounts, shares, ETFs, tokenized stocks, dividends, voting rights, issuer ownership, or physical delivery.

## Protocol capability vs public exposure

At the protocol level, Callput encodes eight strategy families:

* Buy Call
* Sell Call
* Buy Put
* Sell Put
* Buy Call Spread
* Sell Call Spread
* Buy Put Spread
* Sell Put Spread

A product surface or agent wrapper can expose a narrower subset than the protocol itself.\
\* Currently, Callput only providing Call & Put Spread.

## How strategies appear across surfaces

| Surface                                | What you actually see                                                     |
| -------------------------------------- | ------------------------------------------------------------------------- |
| Public market feed                     | option legs grouped by underlying, expiry, and call/put side              |
| Public product and direct integrations | single-leg and spread strategies constructed from those legs              |
| Legacy MCP reference                   | unsigned spread payload generation for `BuyCallSpread` and `BuyPutSpread` |

## Instrument anatomy

A tradable instrument is defined by:

* underlying
* expiry
* strike
* strategy

The live market set is feed-driven. Expiries and strikes must be discovered from the [canonical market feed](https://app-data-base.s3.ap-southeast-1.amazonaws.com/market-data.json) before every trade.

The public feed does not pre-publish packaged spread objects. A spread is created by combining two option legs with the same underlying and expiry and the correct strike ordering for the target strategy.

## Strategy families

### Buy Call

A bullish long option position funded with premium.

### Sell Call

A short call position backed by underlying collateral.

### Buy Put

A bearish long option position funded with premium.

### Sell Put

A short put position backed by USDC collateral.

### Buy Call Spread

A defined-risk bullish spread.

### Sell Call Spread

A defined-risk short call spread.

### Buy Put Spread

A defined-risk bearish spread.

### Sell Put Spread

A defined-risk short put spread.

## Funding and collateral at open

| Strategy         | Default funding or collateral asset at open |
| ---------------- | ------------------------------------------- |
| Buy Call         | USDC                                        |
| Buy Put          | USDC                                        |
| Buy Call Spread  | USDC                                        |
| Buy Put Spread   | USDC                                        |
| Sell Call        | underlying asset                            |
| Sell Put         | USDC                                        |
| Sell Call Spread | USDC                                        |
| Sell Put Spread  | USDC                                        |

## Asset flow when closing before expiry

| Strategy         | Default asset received on close |
| ---------------- | ------------------------------- |
| Buy Call         | USDC                            |
| Buy Put          | USDC                            |
| Buy Call Spread  | USDC                            |
| Buy Put Spread   | USDC                            |
| Sell Call        | underlying asset                |
| Sell Put         | USDC                            |
| Sell Call Spread | USDC                            |
| Sell Put Spread  | USDC                            |

Closing before expiry is not an instant liquidation. It is another queued request.

## Default settlement payout assets after expiry

| Strategy         | Default settlement asset |
| ---------------- | ------------------------ |
| Buy Call         | underlying asset         |
| Sell Call        | underlying asset         |
| Buy Put          | USDC                     |
| Sell Put         | USDC                     |
| Buy Call Spread  | USDC                     |
| Sell Call Spread | USDC                     |
| Buy Put Spread   | USDC                     |
| Sell Put Spread  | USDC                     |

Settlement can still use a path that swaps into another output asset, but the table above describes the default payout direction.

## Spread rules

Callput normalizes leg ordering before creating the final `optionTokenId`. This matters most for spreads, especially put spreads. The final `optionTokenId` should always be treated as the authoritative position identifier.

For external builders, the practical rule is:

* choose two legs with the same underlying and expiry
* apply the strike ordering required by the strategy
* treat the final `optionTokenId`, not the original input order, as the authoritative position identity