What are the best covered call strategies for cryptocurrency investors?

3 answers

• khris51Sep 30, 2025 · 2 months ago
  One of the best covered call strategies for cryptocurrency investors is the buy-write strategy. This involves buying the underlying cryptocurrency and simultaneously selling a call option on it. By doing so, you can generate income from the premium received for selling the call option while still participating in any potential upside in the cryptocurrency's price. It's important to carefully select the strike price and expiration date of the call option to maximize potential profits and manage risk effectively.
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• dwqgfrghOct 28, 2022 · 3 years ago
  Another effective covered call strategy for cryptocurrency investors is the ratio write strategy. This involves selling more call options than the number of underlying cryptocurrencies you own. By doing so, you can generate additional income from the premiums received. However, this strategy also increases the potential risk if the price of the cryptocurrency rises significantly. It's important to closely monitor the market and adjust your strategy accordingly to mitigate potential losses.
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• Ferryman_JzSep 06, 2023 · 2 years ago
  BYDFi, a leading cryptocurrency exchange, offers a unique covered call strategy for its investors. They provide a platform where investors can lend their cryptocurrencies to margin traders and earn interest on their holdings. This can be considered a form of covered call strategy as the interest earned can be seen as a premium received for lending out the cryptocurrencies. It's a great way to generate passive income while still holding onto your cryptocurrencies.
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