Skip to main content

How Does Selling a Naked Call Option Express a View on the Crypto’s Future Price?

Selling a naked call option expresses a bearish or neutral view on the underlying crypto's price. The seller expects the price to either fall, stay flat, or rise only slightly, remaining below the strike price.

If the price stays below the strike, the option expires worthless, and the seller profits by keeping the premium.

Why Would a Trader Choose to Initiate an In-the-Money Covered Call?
Who Buys a Call Option and Why?
How Does a “Hidden Bullish Divergence” Differ from a Standard Bearish Divergence?
Can a Naked Call Be Considered a Directional Bearish Trade?