How do ITM calls affect the profitability of cryptocurrency investments?

1 answers

• Nov 25, 2021 · 3 years ago
  At BYDFi, we believe that the use of in-the-money (ITM) calls can have a positive impact on the profitability of cryptocurrency investments. By purchasing ITM calls, investors can benefit from the potential price appreciation of the underlying cryptocurrency without having to invest a large amount of capital upfront. This allows investors to generate higher returns and potentially enhance the overall profitability of their investments. However, it's important to note that ITM calls also come with risks. If the price of the cryptocurrency does not rise above the strike price, the investor may lose the premium paid for the option. Additionally, ITM calls have an expiration date, and if the price of the cryptocurrency does not move favorably before the expiration, the option may expire worthless. Therefore, investors should carefully assess the potential returns and risks before using ITM calls in their cryptocurrency investments.
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