How is it working? Let's say you need 100k for a house but you want to keep expised to Bitcoin and don't get liquidated as soon as Bitcoin/MSTR drop by 50-80%, how would you proceed, how much BTC you would need to risk?
Discussion
That’s not how it works. You benefit even more with a price dip when you sell the Call because you can buy-to-close it cheaper and keep the profit, and the shares.
There is no liquidation here. This is not trading with leverage. That’s for fools. I’m talking about a calculated options strategy.
Ok then I don't understand how it works. Do you have article to explain? I'm really curious to ubderstand.
interesting to think about this from standpoint of regaining control of a sold covered call when the price dips. i can see how it theoretically works.
it's just hard to see where and when it jumps next.