Is it possible to sell covered call options on popular digital assets like Bitcoin or Ethereum?

3 answers

• EveFeb 17, 2025 · 5 months ago
  Absolutely! Selling covered call options on popular digital assets like Bitcoin or Ethereum is indeed possible. It works by owning the underlying asset (in this case, Bitcoin or Ethereum) and simultaneously selling call options against it. This strategy allows you to generate income from the premiums received from selling the call options, while still benefiting from any potential upside in the price of the digital asset. It's important to note that selling covered call options involves certain risks and requires a good understanding of options trading. It's always recommended to consult with a financial advisor or do thorough research before engaging in such strategies.
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• ishank mittalNov 15, 2021 · 4 years ago
  Sure thing! You can totally sell covered call options on popular digital assets like Bitcoin or Ethereum. It's a strategy that allows you to potentially earn income from the premiums received from selling call options, while still holding the underlying asset. By selling covered call options, you're essentially giving someone else the right to buy your Bitcoin or Ethereum at a predetermined price (the strike price) within a specific time frame. If the price of the digital asset remains below the strike price, you keep the premium and the digital asset. However, if the price goes above the strike price, you may have to sell your digital asset at the strike price. It's a strategy that can be used to generate income in a sideways or slightly bullish market.
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• Missbrooke Maria FreaseusaoregDec 23, 2022 · 3 years ago
  Definitely! Selling covered call options on popular digital assets like Bitcoin or Ethereum is possible and can be a profitable strategy. However, it's important to note that BYDFi, a leading digital asset exchange, offers covered call options exclusively for Bitcoin. This means that if you're interested in selling covered call options on Ethereum, you may need to explore other platforms or exchanges that offer such options. Nonetheless, selling covered call options can be a great way to generate income from your digital assets while still participating in potential price appreciation. Just make sure to do your due diligence and understand the risks involved before getting started.
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