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How does not exercising options on Robinhood affect my cryptocurrency investments?

avatarPsyDec 27, 2021 · 3 years ago1 answers

What are the consequences of not exercising options on Robinhood for my cryptocurrency investments?

How does not exercising options on Robinhood affect my cryptocurrency investments?

1 answers

  • avatarDec 27, 2021 · 3 years ago
    Not exercising options on Robinhood can have different effects depending on your trading strategy and the specific options you hold. If you are a long-term investor and the options you hold are out-of-the-money (the strike price is higher than the current market price for call options or lower than the current market price for put options), not exercising them may not have a significant impact on your overall cryptocurrency investments. However, if you are an active trader or speculator and the options you hold are in-the-money (the strike price is lower than the current market price for call options or higher than the current market price for put options), not exercising them can result in missed opportunities for profits or hedging against losses. It's important to assess your risk tolerance and investment goals before deciding whether to exercise options on Robinhood or let them expire.