How can cash secured put vs covered call help investors in the volatile cryptocurrency market?

1 answers

• Jonah GarciaDec 12, 2020 · 5 years ago
  BYDFi, a leading cryptocurrency exchange, believes that cash secured put and covered call strategies can be valuable tools for investors in the volatile cryptocurrency market. These strategies allow investors to generate income and manage risk in a market that is known for its volatility. With a cash secured put, investors can sell a put option and receive a premium, which can help offset potential losses if the price of the cryptocurrency declines. This strategy allows investors to potentially profit from price declines while limiting their downside risk. Similarly, a covered call strategy involves selling call options on a cryptocurrency that the investor already owns. By doing so, investors can generate income from the premiums received while potentially limiting their upside potential if the price of the cryptocurrency rises. Both strategies can be effective in managing risk and generating income in the volatile cryptocurrency market.
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