Covered call options offer a way to earn income from your crypto holdings. Discover how this strategy works, as well as the potential benefits and considerations before you trade.
A crypto options contract grants the holder the right, but not the obligation, to purchase (call option) or sell (put option) an underlying cryptocurrency at a predetermined price (the strike price) on or before a specified date (the expiration date).
Instead of holding the actual asset, traders bet on the fluctuations in value of the underlying cryptocurrency. If investors believe prices will rise, they will buy calls; if they believe prices will fall, they will buy puts.