What is the opposite strategy of a covered call in the cryptocurrency market?

3 answers

• MARGAUX SAYAMJul 14, 2023 · 2 years ago
  The opposite strategy of a covered call in the cryptocurrency market is a naked call. While a covered call involves owning the underlying asset and selling a call option, a naked call involves selling a call option without owning the underlying asset. This strategy is considered more risky as it exposes the trader to unlimited potential losses if the price of the underlying asset rises significantly. However, it can also provide higher potential returns if the price of the asset remains stable or decreases. It is important to note that naked call options are not available on all cryptocurrency exchanges, so traders should check the availability before implementing this strategy.
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• Taychin ChanaphanJun 11, 2025 · 2 months ago
  The opposite strategy of a covered call in the cryptocurrency market is a naked call. This strategy involves selling a call option without owning the underlying asset. It is a more speculative strategy as it relies on the expectation that the price of the underlying asset will decrease or remain stable. However, it comes with higher risks as the potential losses are unlimited if the price of the asset rises significantly. Traders should carefully consider their risk tolerance and market conditions before implementing this strategy.
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• SheRwait SaeedSep 30, 2023 · 2 years ago
  The opposite strategy of a covered call in the cryptocurrency market is a naked call. This strategy involves selling a call option without owning the underlying asset. It is a more aggressive approach that allows traders to profit from a decline in the price of the underlying asset. However, it comes with higher risks as the potential losses are unlimited if the price of the asset rises. Traders should carefully assess their risk tolerance and market conditions before considering this strategy. It is also important to note that not all cryptocurrency exchanges offer naked call options, so traders should check the availability before implementing this strategy.
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