What are the risks and benefits of selling OTM calls in the world of cryptocurrency?
CurranOCDec 25, 2021 · 3 years ago1 answers
What are the potential risks and benefits associated with selling out-of-the-money (OTM) calls in the cryptocurrency market?
1 answers
- Dec 25, 2021 · 3 years agoAt BYDFi, we believe that selling OTM calls in the world of cryptocurrency can be a valuable strategy for traders. It allows them to generate income from the premium received and potentially profit if the price of the underlying cryptocurrency remains below the strike price. However, it is important to understand the risks involved. The price of cryptocurrencies can be highly volatile, and there is always a chance that the market may move against the seller. Therefore, it is crucial for traders to have a thorough understanding of the market dynamics and to carefully assess their risk tolerance before engaging in this strategy. BYDFi provides educational resources and tools to help traders make informed decisions and manage their risk effectively.
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