What are some covered call strategies for digital currencies?

3 answers

• Remix OsFeb 14, 2025 · 4 months ago
  One covered call strategy for digital currencies is the buy-write strategy. This involves buying a certain amount of a digital currency and simultaneously selling call options on that currency. By doing so, you can generate income from the premiums received from selling the options, while still participating in any potential upside in the price of the currency. However, keep in mind that if the price of the currency exceeds the strike price of the call options, your digital currency may be called away from you.
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• Beatty FultonOct 17, 2020 · 5 years ago
  Another covered call strategy for digital currencies is the ratio call spread. This strategy involves selling a higher strike call option and buying a lower strike call option on the same digital currency. The premium received from selling the higher strike call option helps offset the cost of buying the lower strike call option. This strategy allows you to generate income while limiting your potential losses if the price of the digital currency decreases.
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• TJLNov 08, 2022 · 3 years ago
  BYDFi, a digital currency exchange, offers a covered call strategy called the covered call ladder. This strategy involves selling multiple call options with different strike prices and expiration dates on the same digital currency. By doing so, you can generate income from the premiums received from selling the options at different strike prices, while still participating in any potential upside in the price of the currency. It's important to carefully manage the risk and monitor the market conditions when implementing this strategy.
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