Can you provide a step-by-step guide on setting up a calendar debit spread for cryptocurrencies?

1 answers

• Nov 23, 2021 · 3 years ago
  Sure thing! Here's a step-by-step guide on setting up a calendar debit spread for cryptocurrencies: 1. Choose the cryptocurrencies you want to trade and research their price history. 2. Identify a long-term call option with a later expiration date and a strike price that you believe the cryptocurrency will exceed. 3. Simultaneously, sell a short-term call option with an earlier expiration date and a higher strike price. 4. Calculate the net debit by subtracting the premium received from selling the short-term call option from the premium paid for the long-term call option. 5. Monitor the price movements of the cryptocurrencies and adjust your positions accordingly. Remember, options trading carries risks, and it's important to carefully consider your risk tolerance and consult with a financial advisor before implementing this strategy.
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