What are some practical examples of covered call strategies for digital assets?

3 answers

• Meghan Moira LanningDec 03, 2025 · 2 months ago
  Sure! One practical example of a covered call strategy for digital assets is the buy-write strategy. This strategy involves buying a digital asset and simultaneously selling a call option on that asset. By doing so, you can generate income from the premium received from selling the call option, while still participating in the potential upside of the asset. This strategy can be effective in generating additional income and reducing the overall risk of holding digital assets.
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• Ashish SahDec 10, 2023 · 2 years ago
  Another practical example of a covered call strategy for digital assets is the collar strategy. This strategy involves buying a digital asset, selling a call option on that asset to generate income, and using the premium received to purchase a put option as downside protection. The collar strategy helps limit potential losses while still allowing for potential gains. It's a great way to manage risk and protect your investment in the volatile digital asset market.
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• Mouritzen LaraNov 04, 2023 · 2 years ago
  BYDFi, a leading digital asset exchange, offers a unique covered call strategy for its users. With BYDFi's covered call strategy, users can sell call options on their digital assets and earn premiums, while still holding onto their assets. This strategy allows users to generate additional income and manage risk effectively. It's a great option for those looking to maximize their returns in the digital asset market.
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