What is a bullish put spread example in the context of cryptocurrency trading?

1 answers

• Nov 24, 2021 · 3 years ago
  Let's take a look at a bullish put spread example in the context of cryptocurrency trading. Suppose you are bullish on Ethereum and expect its price to rise in the next month. You could buy a put option with a strike price of $2,000 and sell a put option with a strike price of $1,800. If the price of Ethereum increases above $2,000, the put option you bought will expire worthless, but the put option you sold will still have value. This allows you to profit from the price increase while limiting your potential losses. It's important to note that a bullish put spread example is just one strategy among many in cryptocurrency trading, and its suitability depends on individual risk tolerance and market conditions.
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