Cryptocurrency Q&A
Should strike price be high or low?
Should strike price be high or low?
Dario
Fri Oct 25 2024
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5 answers
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I'm trying to decide whether the strike price for an option should be set high or low. I'm not sure which one would be more beneficial in terms of potential profits and risks. What factors should I consider to make this decision?
5 answers
Raffaele
Sun Oct 27 2024
An investor with a conservative approach to trading may lean towards selecting a call option with a strike price that is at or below the current stock price.
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SamsungShineBrightnessRadianceGlitter
Sat Oct 26 2024
When it comes to put options, a strike price at or above the stock price is generally considered safer than one below the stock price.
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amelia_jackson_environmentalist
Sat Oct 26 2024
This strategy is deemed safer as it provides a level of protection against potential losses if the stock price does not rise as anticipated.
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Raffaele
Sat Oct 26 2024
Conversely, a trader who is more risk-tolerant may opt for a call option with a strike price above the stock price.
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CryptoLord
Sat Oct 26 2024
This choice allows for the possibility of greater gains if the stock price rises significantly.
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