Isn&#x27;t this limited to binary options because binary options have a set price and payout?<p>Regular puts and calls have a potentially unlimited payout which means the seller would have to put up some serious collateral and&#x2F;or hedge their exposure. If nothing else, I&#x27;d figure that would add some complexity and&#x2F;or counterparty risk.<p>I&#x27;m not well versed in these matters, so perhaps you could enlighten me.