Quote from: uninterestedparty33 on Today at 02:15:04 PM

Quote from: somac. on Today at 12:29:01 PM

Quote from: HairyMaclairy on Today at 11:22:32 AM

For anyone considering selling covered calls, just keep in mind this could be a very expensive decision

There is an outside chance that Bitcoin could go to crazy number this year. A $3.5k payment for giving away all the upside on a $200k sale in December 21 may not be a very good deal at all. It’s only a good deal if you are happy selling at $200k no matter what. Because the price could be $500k at that time. In that scenario, you just lost $296.5k in value.

Yes this is the risk, one has to remember you are doing this for the income and will forgo, if necessary capital gains. However, your example is not the best. Right now you could earn 3.5k on an option with strike price of 60k that expires in 2 weeks (5th March). Or, 3.2k an an option with strike price of 72k that expires in a little of 4 weeks (25th March). These 2 I mention also offer capital gains if the price expires over the strike price.

I would only sell one month options at most.

Options are still hard for me to grasp. As far as I understand the moment you try options, you are 'naked' buying and selling and that is very bad. How do you cover?

Don't worry for them. They won't let you go naked. The options we're talking about are covered - which means you have to post btc collateral before being able to write them.