How does selling call options work in the context of digital currencies?

1 answers

• Kendry OvalleJun 27, 2022 · 3 years ago
  Selling call options in the context of digital currencies can be a way to generate income and potentially profit from the market. As the seller, you grant the buyer the right to purchase a specific amount of digital currency at a predetermined price within a certain time frame. In return, you receive a premium. If the price of the digital currency remains below the predetermined price, the buyer will not exercise their option, and you keep the premium. However, if the price rises above the predetermined price, the buyer may choose to exercise the option, and you will be obligated to sell them the digital currency at the predetermined price. It's important to note that selling call options involves risks, and market conditions can impact the profitability of this strategy. It's advisable to consult with a financial advisor or do thorough research before engaging in options trading.
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