What are some cheap option trading strategies in the cryptocurrency market?

4 answers

• Dec 16, 2021 · 3 years ago
  Sure! One cheap option trading strategy in the cryptocurrency market is the covered call strategy. This strategy involves selling call options on a cryptocurrency that you already own. By doing so, you can generate income from the premiums received from selling the options. If the price of the cryptocurrency remains below the strike price of the options, you get to keep the premium and your cryptocurrency. However, if the price rises above the strike price, your cryptocurrency may be called away, but you still get to keep the premium. This strategy can be a great way to generate income while holding onto your cryptocurrency.
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• Dec 16, 2021 · 3 years ago
  Another cheap option trading strategy in the cryptocurrency market is the cash-secured put strategy. With this strategy, you sell put options on a cryptocurrency that you would like to buy at a lower price. By doing so, you receive a premium for selling the options. If the price of the cryptocurrency remains above the strike price of the options, you get to keep the premium and no further action is required. However, if the price falls below the strike price, you may be obligated to buy the cryptocurrency at the strike price. This strategy allows you to potentially buy the cryptocurrency at a lower price while earning income from the premiums received.
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• Dec 16, 2021 · 3 years ago
  BYDFi, a popular cryptocurrency exchange, offers a range of low-cost option trading strategies in the cryptocurrency market. They provide educational resources and tools to help traders implement these strategies effectively. Some of their cheap option trading strategies include covered calls, cash-secured puts, and debit spreads. These strategies can be a great way to generate income and manage risk in the cryptocurrency market. If you're interested in exploring these strategies further, I recommend checking out BYDFi's platform.
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• Dec 16, 2021 · 3 years ago
  When it comes to cheap option trading strategies in the cryptocurrency market, it's important to consider your risk tolerance and investment goals. One strategy that can be relatively low-cost is the long straddle strategy. This strategy involves buying both a call option and a put option on the same cryptocurrency with the same strike price and expiration date. The goal is to profit from significant price movements in either direction. While this strategy can be affordable, it's important to note that it carries a higher level of risk due to the potential for loss if the price doesn't move significantly. As always, it's crucial to do your own research and consider seeking professional advice before implementing any trading strategy.
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