How can I utilize covered calls to generate income from my digital assets?

3 answers

• Ochoa HarrisonApr 24, 2025 · 2 months ago
  Covered calls are a popular strategy in the world of options trading. They involve selling call options on an asset that you already own. By doing so, you generate income from the premiums received from selling the options. If the price of the asset remains below the strike price of the options, you keep the premium and can continue to sell more covered calls. However, if the price of the asset rises above the strike price, you may be obligated to sell your asset at the strike price. This strategy can be used with digital assets as well, but it's important to understand the risks and potential rewards before implementing it in your portfolio.
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• ben11bruzJun 05, 2024 · a year ago
  Covered calls are a great way to generate income from your digital assets. By selling call options on your assets, you can collect premiums and potentially profit even if the price of the asset doesn't increase significantly. However, it's important to note that this strategy does come with risks. If the price of the asset rises above the strike price of the options, you may be obligated to sell your assets at a lower price than their market value. It's important to carefully consider your risk tolerance and investment goals before implementing covered calls in your digital asset portfolio.
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• Etane86Dec 20, 2022 · 2 years ago
  At BYDFi, we believe that covered calls can be a valuable strategy for generating income from your digital assets. By selling call options on your assets, you can collect premiums and potentially profit even if the price of the asset doesn't increase significantly. However, it's important to understand the risks involved. If the price of the asset rises above the strike price of the options, you may be obligated to sell your assets at a lower price than their market value. It's important to carefully consider your risk tolerance and investment goals before implementing covered calls in your digital asset portfolio.
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