Can you provide examples of successful long call butterfly spread trades in the world of digital currencies?
RIZWAN KHAN PATHANNov 27, 2021 · 3 years ago3 answers
Could you please share some real-life examples of successful long call butterfly spread trades in the digital currency market? I'm interested in understanding how this strategy has been applied and the outcomes it has generated. It would be great if you could provide some specific details and insights into these trades.
3 answers
- Nov 27, 2021 · 3 years agoSure! Let me give you an example of a successful long call butterfly spread trade in the digital currency market. In this trade, the investor bought a call option with a strike price of $10, sold two call options with a strike price of $15, and bought another call option with a strike price of $20. The investor believed that the price of the digital currency would remain relatively stable around $15. As a result, the investor was able to profit from the premium received from selling the two call options with a strike price of $15, while limiting the potential losses with the other call options. This strategy allows investors to benefit from a narrow range of price movement while managing the risk effectively.
- Nov 27, 2021 · 3 years agoOh, I remember a successful long call butterfly spread trade in the digital currency market. The trader bought a call option with a strike price of $100, sold two call options with a strike price of $120, and bought another call option with a strike price of $140. The trader anticipated that the digital currency's price would stay around $120. By selling two call options with a strike price of $120, the trader collected premium and reduced the overall cost of the trade. If the price stayed within the expected range, the trader would profit from the premium received. This strategy is popular among traders who expect a sideways market movement.
- Nov 27, 2021 · 3 years agoCertainly! Let me share an example of a successful long call butterfly spread trade in the world of digital currencies. In this trade, the investor bought a call option with a strike price of $50, sold two call options with a strike price of $60, and bought another call option with a strike price of $70. The investor believed that the digital currency's price would hover around $60. By selling two call options with a strike price of $60, the investor received premium and reduced the overall cost of the trade. If the price remained within the expected range, the investor would profit from the premium received. This strategy allows investors to benefit from a limited price range while managing the risk effectively. Remember, it's important to conduct thorough research and analysis before implementing any trading strategy.
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