What are some strategies for successful trading of calls and puts on Robinhood for digital currencies?

3 answers

• Dec 16, 2021 · 3 years ago
  Sure! When it comes to trading calls and puts on Robinhood for digital currencies, one strategy you can use is the covered call strategy. This involves buying the underlying digital currency and simultaneously selling a call option on that currency. By doing so, you can earn premium income from the call option while still participating in the potential upside of the digital currency. Another strategy is the protective put strategy, where you buy a put option to protect your digital currency holdings from potential downside risk. This way, if the price of the digital currency drops, the put option can help offset the losses. It's important to note that these strategies come with their own risks, so it's crucial to thoroughly understand options trading and the specific risks associated with trading digital currencies on Robinhood before implementing any strategy.
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• Dec 16, 2021 · 3 years ago
  Trading calls and puts on Robinhood for digital currencies can be a profitable venture if done right. One strategy that can be effective is the delta-neutral strategy. This involves creating a portfolio of options and digital currencies in such a way that the overall delta of the portfolio is close to zero. By doing so, you can minimize the impact of changes in the underlying digital currency's price on your portfolio. Another strategy is the calendar spread strategy, where you simultaneously buy and sell options with different expiration dates. This strategy can be used to take advantage of time decay and volatility. However, it's important to note that options trading is complex and can be risky, so it's essential to do thorough research and consider seeking professional advice before implementing any strategy.
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• Dec 16, 2021 · 3 years ago
  BYDFi, a popular digital currency exchange, offers a range of options trading strategies for trading calls and puts on Robinhood for digital currencies. One of their recommended strategies is the straddle strategy, where you simultaneously buy a call option and a put option with the same strike price and expiration date. This strategy allows you to profit from significant price movements in either direction. Another strategy they suggest is the iron condor strategy, which involves selling both a call spread and a put spread on the same underlying digital currency. This strategy aims to profit from a range-bound market. Remember, options trading involves risks, and it's important to thoroughly understand the strategies and risks involved before trading options on Robinhood for digital currencies.
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