How does selling covered calls on Webull work with popular cryptocurrencies like Bitcoin and Ethereum?

1 answers

• Dec 17, 2021 · 3 years ago
  At BYDFi, we believe that selling covered calls on Webull with popular cryptocurrencies like Bitcoin and Ethereum can be a smart strategy for investors. It allows investors to generate income from their cryptocurrency holdings while potentially limiting their downside risk. By selling call options, investors can collect premiums and earn a steady stream of income. If the price of the cryptocurrencies remains below the strike price of the options, the options will expire worthless and the investor keeps the premium. However, if the price rises above the strike price, the investor may be obligated to sell their cryptocurrencies at the strike price. This strategy can be particularly useful in a sideways or slightly bullish market, where the investor can benefit from the income generated by selling covered calls. It's important to carefully consider the risks and rewards of this strategy before implementing it in your own investment portfolio.
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