Compute options will be as transformative to the US AI industry as compute futures. Sellers and buyers of compute won't only use options for insurance, they'll write options and get paid. Covered calls and cash-secured puts: Compute sellers: covered calls Compute sellers such as neoclouds are long inventory: racks of accelerators that will be rented out over the coming years. Against the capacity they already own, they can write covered calls on GPU-hour prices above today's market and collect the premium as income. If prices stay flat or drift lower, they keep the premium as yield on top of their rental revenue. If prices rise above the strike price at expiration, they rent out capacity at the strike price while still keeping the premium. The upside beyond the strike is capped, but in return the seller converts a portion of future GPU price volatility into present cash. At each expiry, the seller can keep writing calls against inventory, harvesting premium from a depreciating asset. Compute buyers: cash-secured puts Compute buyers such as frontier model companies and AI labs are short inventory, looking to acquire rental time on GPUs. Buying futures locks in their effective price, and buying calls insures against rising prices. But there's another important derivatives trading strategy for compute buyers: writing cash-secured puts. If there's a price below the prevailing GPU rental rate that a buyer would be happy to pay, they can sell a put at that strike and immediately collect the premium as income. If prices rise, they keep the premium when the put expires out of the money. If prices fall to the strike or below, they effectively buy compute at the lower price, partially subsidized by the premium they collected. Both strategies, executed with discipline and proper risk management, generate income while the worst-case exercise scenarios align with the natural hedge. In summary: • Futures: lock in the forward price of compute. • Buying options: insure against adverse moves in GPU prices. • Selling covered calls or cash-secured puts: generate income where exercise aligns with the natural hedging outcome. These strategies are hallmarks of mature US derivative markets facilitated by CFTC oversight. The American Innovation Exchange and our industry partners are ready to support compute as a US-developed asset class from the beginning.