Is it possible to buy back a covered call with Bitcoin or other cryptocurrencies?

3 answers

• Hvid KristiansenJun 22, 2020 · 5 years ago
  Yes, it is possible to buy back a covered call with Bitcoin or other cryptocurrencies. When you sell a covered call, you are essentially selling the right for someone else to buy your Bitcoin or other cryptocurrencies at a specific price (the strike price) within a certain timeframe. If the price of the cryptocurrency rises above the strike price, the buyer of the call option may choose to exercise their right and buy your cryptocurrency. In this case, you can buy back the call option to close out the position and retain ownership of your cryptocurrency.
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• preetham varmaOct 09, 2020 · 5 years ago
  Absolutely! Buying back a covered call with Bitcoin or other cryptocurrencies is a common strategy used by traders. It allows you to close out your position and retain ownership of your cryptocurrency. When you buy back the call option, you essentially cancel out the initial transaction and remove the obligation to sell your cryptocurrency at the strike price. This gives you the flexibility to hold onto your cryptocurrency if you believe its value will continue to rise.
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• Bakar AhmedouMay 20, 2023 · 2 years ago
  Yes, you can buy back a covered call with Bitcoin or other cryptocurrencies. BYDFi, a popular cryptocurrency exchange, offers options trading services that allow you to buy back covered calls. When you buy back a covered call, you are essentially closing out your position and retaining ownership of your cryptocurrency. It's a great way to manage risk and take advantage of market opportunities.
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