common-close-0
BYDFi
Trade wherever you are!

What are the available options for a buyer of a put on expiration in the cryptocurrency market?

avatarOludele DareDec 15, 2021 · 3 years ago1 answers

When a buyer of a put option in the cryptocurrency market reaches the expiration date, what are the different options available to them? What can they do with the put option at this point?

What are the available options for a buyer of a put on expiration in the cryptocurrency market?

1 answers

  • avatarDec 15, 2021 · 3 years ago
    In the cryptocurrency market, when a buyer of a put option reaches the expiration date, they have the option to exercise the put option and sell the underlying cryptocurrency at the strike price. This can be advantageous if the market price of the cryptocurrency has fallen below the strike price, allowing the buyer to profit from the price difference. However, if the market price is higher than the strike price, it may be more beneficial for the buyer to let the put option expire worthless. This would result in the loss of the premium paid for the option, but it would also avoid selling the cryptocurrency at a lower price than the market value. The decision to exercise or let the put option expire depends on the buyer's assessment of the market conditions and their own investment goals.