Guide

Covered Calls on CS2 Skins

Covered calls let inventory holders quote calls against eligible skins they own or deposit. The position is covered because the underlying skin is available for delivery if the call is exercised.

Why custody matters

Physical settlement needs confidence that the referenced skin can be delivered. CSfi uses custody and verification workflows to reduce failed-delivery risk.

Users should understand withdrawal constraints, encumbrance, and settlement timing before writing calls.

Two common outcomes

If the option expires unexercised, the writer keeps the premium and can withdraw the unencumbered skin when eligible.

If the option is exercised, the writer keeps the premium but may deliver the skin under the option terms.

Writer risks

Covered calls can limit upside if the skin price rises sharply. Writers also face custody, platform, timing, and beta availability constraints.

Example: writing against custody-ready inventory

An inventory holder has an eligible skin that has passed custody checks. They write a 30-day call with a 125 USDC strike and receive a 6 USDC premium when a quote is accepted.

If the call is not exercised, the writer keeps the premium and may withdraw the unencumbered skin when released. If the call is exercised, the writer keeps the premium but may deliver the skin under the accepted terms.

Covered call outcome scenarios

ScenarioInventory holder impactKey risk
Expires unexercisedPremium kept; skin can become available after release.Premium may not compensate for opportunity cost or fees.
Exercised after skin risesPremium kept, but skin delivery or settlement may be required.Upside above the strike can be limited.
Custody or beta constraint appearsWithdrawal and new quoting can be paused until controls resolve.Operational, Steam, chain, and beta availability risk remain.

Review custody requirements

Start with custody and settlement rules before checking inventory or writing calls.

Review custody requirements

Check eligible inventory

Connect only when you are ready to enter the private inventory workflow.

Check eligible inventory

FAQ

Can I withdraw a covered skin?

You can withdraw only when the asset is not locked or encumbered by an active option lifecycle.

Is premium guaranteed income?

No. Premium has trade-offs and risks, including delivery obligation and opportunity cost.

Next steps