How does a short put option strategy work in the context of digital currencies?

1 answers

• Jan 13, 2022 · 3 years ago
  In the context of digital currencies, a short put option strategy can be a way to generate income or acquire digital currencies at a lower price. BYDFi, a digital currency exchange, offers short put options on various digital currencies. When you sell a put option on BYDFi, you receive a premium upfront. If the price of the digital currency remains above the strike price, the option expires worthless and you keep the premium. However, if the price falls below the strike price, you may be obligated to buy the digital currency at the strike price. It's important to carefully consider your risk tolerance and market expectations before engaging in this strategy on BYDFi or any other digital currency exchange.
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