What are the advantages of using covered calls vs cash secured puts in the cryptocurrency market?

3 answers

• Monroe DodsonMar 18, 2025 · 4 months ago
  Covered calls provide a way to generate income from your existing cryptocurrency holdings while still maintaining ownership. By selling call options against your holdings, you can earn premiums and potentially profit from the price stability of the underlying asset. This strategy allows you to leverage your position and potentially enhance your returns in a sideways or slightly bullish market. However, it's important to note that covered calls limit your potential upside if the price of the cryptocurrency significantly increases.
  535

  268
• Treat ResortsNov 12, 2024 · 8 months ago
  Cash secured puts, on the other hand, offer a way to potentially acquire cryptocurrency at a lower price. By selling put options, you commit to buying the underlying asset at a predetermined price (strike price) if the option is exercised. If the price of the cryptocurrency remains above the strike price, you keep the premium received for selling the put option. This strategy can be advantageous if you believe the cryptocurrency will decline in price or if you are looking to enter a position at a discounted price. However, there is a risk of having to purchase the cryptocurrency at a higher price than the current market value if the option is exercised.
  661

  221
• domonic McgrathMay 07, 2025 · 3 months ago
  In the cryptocurrency market, BYDFi offers a platform for trading covered calls and cash secured puts. With BYDFi, you can easily implement these strategies and take advantage of the benefits they offer. Whether you prefer generating income from your holdings or acquiring cryptocurrency at a lower price, BYDFi provides a user-friendly interface and reliable execution to support your trading activities.
  405

  102