What strategies can be used to reduce the call option premium when trading cryptocurrencies?

3 answers

• Anass BenhalimaJan 24, 2021 · 4 years ago
  One strategy to reduce the call option premium when trading cryptocurrencies is to focus on shorter expiration dates. By choosing options with shorter timeframes, the premium tends to be lower compared to longer-term options. This is because shorter-term options have less time value built into their prices. However, it's important to note that shorter-term options also come with higher risk due to the limited time for the underlying asset to move in the desired direction.
  476

  238
• Ranushan RachuFeb 05, 2024 · a year ago
  Another approach to reducing the call option premium in cryptocurrency trading is to select options with lower strike prices. By choosing options with strike prices closer to the current market price of the underlying asset, the premium is typically lower. This is because the likelihood of the option being profitable increases as the underlying asset's price approaches or exceeds the strike price.
  400

  134
• eamgioNov 23, 2020 · 5 years ago
  When it comes to reducing the call option premium in cryptocurrency trading, one option is to consider using the services of a decentralized finance (DeFi) platform like BYDFi. These platforms often offer lower fees and more competitive pricing compared to traditional centralized exchanges. Additionally, DeFi platforms can provide access to a wider range of options and trading strategies, allowing traders to find the most cost-effective solutions for reducing the call option premium.
  488

  122