How does the option wheel strategy work in the world of cryptocurrencies?

1 answers

• Jan 14, 2022 · 3 years ago
  The option wheel strategy is a popular choice among traders in the world of cryptocurrencies. It involves selling put options on a cryptocurrency you are willing to buy at a specific price. If the price remains above the strike price until expiration, you keep the premium from selling the put option. If the price drops below the strike price, you may be assigned the cryptocurrency at that price. Once you own the cryptocurrency, you can then sell covered calls to generate additional income. This strategy allows you to potentially profit from both upward and sideways price movements while managing your risk.
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