When do call options on digital currencies expire?
Cadnaan FarxaanDec 27, 2021 · 3 years ago3 answers
Can you please explain when call options on digital currencies expire? I'm new to options trading and would like to understand the expiration process for call options on digital currencies.
3 answers
- Dec 27, 2021 · 3 years agoCall options on digital currencies typically have a fixed expiration date. This means that the option contract is only valid until a certain date and time. Once the expiration date is reached, the option contract becomes worthless and the right to buy the underlying digital currency at the strike price is lost. It's important to keep track of the expiration date when trading call options to avoid any unexpected losses.
- Dec 27, 2021 · 3 years agoWhen call options on digital currencies expire, it means that the option contract is no longer valid. This expiration date is predetermined and specified in the option contract. After the expiration date, the option holder no longer has the right to buy the digital currency at the strike price. It's crucial to be aware of the expiration date when trading call options to make informed decisions and manage risk effectively.
- Dec 27, 2021 · 3 years agoCall options on digital currencies, including Bitcoin and Ethereum, have expiration dates that are set by the exchange where the options are traded. For example, on BYDFi, call options typically expire on the last Friday of the month. It's important to check the specific expiration date for each option contract before trading. Remember that call options expire at the end of the expiration date, so it's crucial to plan your trades accordingly.
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