Is it permissible to sell a call option on a digital asset before it reaches the strike price?

3 answers

• Roche HinsonMar 29, 2022 · 3 years ago
  Yes, it is permissible to sell a call option on a digital asset before it reaches the strike price. This practice is known as early exercise. By selling the call option before it reaches the strike price, the option holder can lock in profits and avoid potential losses if the price of the underlying asset decreases. However, it's important to note that early exercise may result in missed opportunities for further gains if the price continues to rise. It's advisable to carefully consider the market conditions and consult with a financial advisor before making such a decision.
  581

  291
• Aleksander Kotyński-BuryłaDec 07, 2021 · 4 years ago
  Absolutely! You have the freedom to sell a call option on a digital asset before it reaches the strike price. It's your call, pun intended! Selling before the strike price can be a smart move if you believe the asset's price will decline or if you simply want to secure some profits. Just keep in mind that selling early means you won't benefit from any potential further price increases. So, it's a trade-off between locking in gains and potentially missing out on additional profits. Make sure to assess the market conditions and your own risk tolerance before taking any action.
  581

  194
• Saurav SarodeMay 27, 2025 · 2 months ago
  Yes, it is permissible to sell a call option on a digital asset before it reaches the strike price. This flexibility allows traders to take advantage of market conditions and manage their risk. By selling the call option early, traders can realize profits and avoid potential losses if the asset's price doesn't reach the strike price. However, it's important to note that selling early may result in missed opportunities for higher profits if the asset's price surpasses the strike price. Traders should carefully analyze the market trends and their own investment goals before deciding to sell a call option before it reaches the strike price.
  645

  162