Terro Protocol is a cryptocurrency investment platform that allows users to generate income from their cryptocurrency holdings through option trading. Our platform offers two main products: covered call options and put selling options.
The covered call options and put selling options allow users to earn income through option trading on their cryptocurrency holdings.
Covered call options allow users to earn yield by selling the right to buy their cryptocurrency holdings at a pre-determined price (strike price). If the price of the underlying cryptocurrency rises, they may be required to sell their holdings at the strike price, but they will keep the premium received as profit. If the price of the underlying cryptocurrency falls, they can keep both the premium and the cryptocurrency holdings. This strategy can help generate income for users while also managing their risk.
Put selling options allows users to earn yield by selling put options on cryptocurrencies they don't own. If the price falls below the strike price, they may need to purchase the cryptocurrency at the strike price. If the price remains above the strike price, the put option will expire worthless and the users can keep the premium as profit.
With put selling options, users can earn yield by selling put options on cryptocurrencies that they do not currently own. If the price of the underlying cryptocurrency falls below the strike price of the put option, users may be required to purchase the cryptocurrency at the strike price. If the price of the underlying cryptocurrency remains above the strike price, the put option will expire worthlessly and users can keep the premium as profit.
Terra Protocol is a decentralized platform built on the Ethereum blockchain that aims to offer a secure, reliable, and user-friendly solution for individuals and institutions looking to generate income from their cryptocurrency holdings.
Crypto Option Trading Income
Option trading with cryptocurrency involves buying or selling options contracts, which give the buyer the right, but not the obligation, to buy or sell an underlying asset at a specific price and within a specific time period.
Cryptocurrency holders can generate income from their holdings through option trading by selling options contracts and collecting the premium. This premium is the price of the option contract and represents the compensation received by the seller for taking on the risk of selling the underlying asset.
For example, if a person holds Bitcoin and believes that its price will remain stable or go up, they can sell a call option, giving the buyer the right to purchase the Bitcoin at a specific price. If the price does not exceed the strike price, the option will expire worthless, and the seller will keep the premium as profit.
However, if the price of the underlying asset does exceed the strike price, the seller may have to sell the asset at the agreed-upon price, potentially missing out on potential future price gains. As such, option trading requires a thorough understanding of market conditions and a solid strategy to manage the risk associated with the trade.