How can I use covered calls on Robinhood to generate income with cryptocurrencies?

1 answers

• Dec 29, 2021 · 3 years ago
  Using covered calls on Robinhood to generate income with cryptocurrencies is a strategy that can be employed by traders. It involves selling call options on your cryptocurrency holdings, which allows you to earn premium income. By selling a call option, you give someone the right to buy your cryptocurrency at a predetermined price within a specific time frame. In return, you receive a premium. If the price of the cryptocurrency remains below the strike price, the option will expire worthless, and you keep the premium as profit. However, if the price of the cryptocurrency rises above the strike price, the option may be exercised, and you would have to sell your cryptocurrency at the strike price. It's important to note that this strategy requires a solid understanding of options trading and the cryptocurrency market, and it's crucial to carefully consider the risks involved before implementing it.
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