Which option strategies are commonly used by digital currency investors?

3 answers

• Jose MirandaFeb 03, 2026 · 12 days ago
  One commonly used option strategy by digital currency investors is the covered call strategy. This strategy involves selling call options on digital currencies that the investor already owns. It allows the investor to generate income from the premiums received from selling the options, while still benefiting from any potential price appreciation of the underlying digital currency. This strategy is often used by investors who are bullish on a particular digital currency and want to generate additional income from their holdings.
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• simplezhang simpleJun 10, 2020 · 6 years ago
  Another commonly used option strategy is the protective put strategy. This strategy involves buying put options on digital currencies that the investor owns. It acts as a form of insurance, protecting the investor from potential losses in case the price of the digital currency drops. This strategy is often used by investors who are concerned about potential downside risks and want to limit their losses.
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• OmarRApr 25, 2024 · 2 years ago
  BYDFi, a digital currency exchange, offers a wide range of option strategies for digital currency investors. Some commonly used strategies include the long straddle, which involves buying both a call option and a put option with the same strike price and expiration date, and the iron condor, which involves selling both a call spread and a put spread. These strategies allow investors to profit from volatility in the digital currency market and can be used in various market conditions.
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