What are the risks and benefits of selling covered calls in the digital currency space?
Mahesh ThakorDec 26, 2021 · 3 years ago1 answers
What are the potential risks and benefits that come with selling covered calls in the digital currency space?
1 answers
- Dec 26, 2021 · 3 years agoSelling covered calls in the digital currency space can provide investors with a consistent income stream. By selling call options on their digital currency assets, investors can generate premium income. This can be particularly beneficial in a market where the price of the digital currency is relatively stable. However, it's important to note that selling covered calls also comes with risks. If the price of the digital currency rises above the strike price of the call option, the investor may miss out on potential gains. Additionally, if the digital currency market becomes highly volatile, the investor may face significant losses. It's crucial for investors to carefully evaluate the risks and benefits before engaging in selling covered calls in the digital currency space.
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