What is the impact of selling a call option on the price of a digital currency? Is it bullish or bearish?

3 answers

• Bailey McKayAug 29, 2024 · a year ago
  Selling a call option on a digital currency can have a bearish impact on its price. When someone sells a call option, they are essentially giving someone else the right to buy the currency at a specific price in the future. This can create selling pressure as the option holder may exercise their right to buy the currency if its price rises above the strike price. As a result, the increased supply of the currency in the market can lead to a decrease in its price, indicating a bearish sentiment.
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• supriyaJan 30, 2023 · 2 years ago
  When a call option on a digital currency is sold, it can be seen as a bearish signal. The seller is essentially betting that the price of the currency will not rise above the strike price by the expiration date. This indicates a lack of confidence in the currency's potential for significant price appreciation. As a result, selling call options can put downward pressure on the price of the digital currency, suggesting a bearish sentiment among market participants.
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• Akhil RMar 12, 2021 · 4 years ago
  Selling a call option on a digital currency can be considered a bearish move. By selling the call option, the seller is essentially taking a position that the price of the currency will not rise above the strike price before the option's expiration date. This indicates a lack of bullish sentiment and can potentially lead to a decrease in the price of the digital currency. However, it's important to note that the impact of selling a call option on the price of a digital currency can vary depending on various market factors and the overall sentiment of traders.
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