How Writ works.

Writ lists two kinds of options on Robinhood Stock Tokens, both fully collateralised, so a buyer is always paid in full.

Covered call. The writer locks one Stock Token per contract. If the stock ends above the strike S > K, the buyer receives (S − K) / S tokens per contract, which is worth exactly S − K dollars at the settlement price. The writer receives the rest of the locked token.

Cash-secured put. The writer locks the strike in USDG per contract. If the stock ends below the strike, the buyer receives K − S USDG per contract. The writer receives the rest.

One contract is one share. Sizes go down to 0.001 of a share.

A writer picks the stock, call or put, expiry, strike, size and the premium per contract, and locks the collateral. The listing goes on the board.

A buyer takes any part of a listing and pays the premium in USDG. It goes straight to the writer in the same transaction, less the fee (1% of the premium, at most 3% by contract). The buyer sets the most they will pay, so a listing cannot change under them.

The unsold part of a listing can be cancelled at any time, before or after expiry, and its collateral comes straight back. A sold option runs to expiry: there is no secondary market yet.

The board shows a model value next to each strike: Black–Scholes with no rates, on the stock's realised volatility from its last Chainlink rounds. It is a guide for writers, never a quote.

Every option expires on a Friday at 20:00 UTC, up to ten weeks out. After that, anyone can settle a series by naming the last Chainlink round at or before the expiry. The contract checks it: that round must be no later than the expiry and no older than four days, and the next round must come after the expiry.

The settlement price is that round's answer. If the Stock Token's own oracle is paused at the time, settlement waits. Nothing is ever traded on a pool, so pool prices cannot move a result.

After settlement each side claims: the buyer what the option is worth, the writer the rest of the collateral. The site finds the round and settles in the same transaction as the first claim.

Collateral is locked when a listing is made and is paid out only by settlement or cancellation. Amounts are rounded up when locked and down when paid, so the contract can never owe more than it holds.

The owner can change the fee (at most 3% of the premium) and where it goes. It has no function that moves collateral, premiums or payouts. Price feeds can only be changed through the oracle with a two-day delay.

The contracts are new and unaudited. Fork tests on Robinhood Chain mainnet cover covered calls, cash-secured puts, settlement on the real NVDA feed and every guard.

A covered call gives away every dollar above the strike. A cash-secured put pays for every dollar below it. A bought option can end worth nothing. Settlement depends on Chainlink and on the Stock Token oracle. Use only what you can afford to have locked until Friday.