How does the covered call strategy apply to digital currencies like Bitcoin and Ethereum?

3 answers

• Alvaro VidalAug 18, 2025 · 3 months ago
  The covered call strategy is a popular options trading strategy where an investor sells a call option on a security they already own. This strategy can be applied to digital currencies like Bitcoin and Ethereum by selling call options on these cryptocurrencies that the investor already holds. By doing so, the investor can generate income from the premiums received from selling the call options, while still benefiting from any potential price appreciation of the underlying digital currencies. It's important to note that this strategy carries risks, as the investor may be obligated to sell their digital currencies at the strike price if the call options are exercised.
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• Munir MuratovićJul 03, 2021 · 4 years ago
  The covered call strategy is a great way to generate income from your digital currency holdings. By selling call options on Bitcoin and Ethereum, you can earn premiums while still participating in any potential price gains. This strategy is particularly useful in a sideways or slightly bullish market, where you don't expect significant price movements. However, it's important to carefully consider the strike price and expiration date of the call options to ensure they align with your investment goals and risk tolerance.
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• OnlybullyOct 14, 2022 · 3 years ago
  At BYDFi, we believe that the covered call strategy can be an effective way to enhance your digital currency investment strategy. By selling call options on Bitcoin and Ethereum, you can generate income and potentially reduce your overall cost basis. However, it's important to carefully assess the risks involved and consult with a financial advisor before implementing this strategy. Remember, options trading carries its own set of risks and may not be suitable for all investors. Always do your own research and make informed decisions when it comes to investing in digital currencies.
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