What are the risks and rewards of selling covered calls on Robinhood for digital currencies?

3 answers

• Maher BeringOct 18, 2025 · 4 months ago
  Selling covered calls on Robinhood for digital currencies can be a potentially lucrative strategy. By selling a call option on a digital currency you own, you can earn premium income while still holding onto the underlying asset. The risk is that if the price of the digital currency increases significantly and the call option is exercised, you may miss out on potential gains. However, if the price remains below the strike price of the call option, you keep the premium and the digital currency. It's important to carefully consider your risk tolerance and market expectations before engaging in this strategy.
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• SteveParkOct 28, 2025 · 4 months ago
  Selling covered calls on Robinhood for digital currencies is a way to generate additional income from your holdings. By selling call options, you can collect premiums from buyers who are betting on the price of the digital currency to increase. However, there are risks involved. If the price of the digital currency rises above the strike price of the call option, the buyer may exercise the option and you would have to sell your digital currency at the agreed-upon price, missing out on potential future gains. It's important to assess the market conditions and your own investment goals before implementing this strategy.
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• Aarti ChaudharyJan 07, 2022 · 4 years ago
  Selling covered calls on Robinhood for digital currencies can be a profitable strategy, but it's important to understand the risks involved. While you can earn premium income by selling call options, there is the possibility that the price of the digital currency could skyrocket and you would have to sell your holdings at a predetermined price. This risk can be mitigated by carefully selecting the strike price and expiration date of the call option. At BYDFi, we offer a range of tools and resources to help traders navigate the risks and rewards of selling covered calls on Robinhood for digital currencies.
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