Are there any strategies to exercise a put option on a crypto without owning the underlying asset?

3 answers

• Carlos Eduardo RodriguesFeb 10, 2025 · 4 months ago
  One strategy you can consider is using a cash-settled put option. With this type of option, instead of physically owning the underlying asset, you can settle the option in cash. This means that if the price of the cryptocurrency falls below the strike price of the put option, you can exercise the option and receive a cash payout based on the difference between the strike price and the market price. This allows you to profit from the price decline without actually owning the cryptocurrency.
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• Simon ElijahOct 15, 2020 · 5 years ago
  Another strategy is to use a synthetic put option. This involves combining a long call option with a short position in the underlying cryptocurrency. By doing this, you effectively create a synthetic put option. If the price of the cryptocurrency drops, the value of the long call option will increase, offsetting the losses from the short position. This strategy allows you to gain exposure to the downside movement of the cryptocurrency without owning it outright.
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• Lerche KoefoedNov 15, 2023 · 2 years ago
  BYDFi, a leading cryptocurrency exchange, offers a unique solution for exercising put options without owning the underlying asset. Through their platform, users can enter into put option contracts and settle them in cash. This allows traders to profit from the price decline of a cryptocurrency without the need to actually own it. BYDFi's user-friendly interface and advanced trading features make it a popular choice among options traders.
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