"Covered calls, protective puts, and collar strategies that once defined sophisticated Bitcoin trading are now standard tools across the most liquid altcoin markets. This shift marks a turning point in how altcoins are perceived and traded. XRP, SOL, and ETH are no longer just speculative assets for retail traders chasing 10x returns. They're becoming institutional products: vehicles for structured yield generation, volatility management, and portfolio hedging."
"A covered call involves holding the underlying asset-such as Bitcoin or XRP-and selling call options against it. This generates premium income, turning a volatile asset into a yield-bearing one. The trade-off is that upside is capped beyond the strike price-if the asset rallies beyond the strike price, the seller forfeits additional gains.. For institutions, this is a conservative income strategy that works well in sideways or moderately bullish markets."
Institutions are adapting Bitcoin options techniques—covered calls, protective puts, and collars—to major altcoins such as XRP, Solana, and Ethereum. Options usage indicates multi-month commitment and requires derivatives expertise rather than short-term spot speculation. Covered calls generate premium income while capping upside beyond strike prices, converting volatile tokens into yield-bearing assets. Protective puts provide explicit downside protection. These strategies reframe XRP, SOL, and ETH as instruments for structured yield generation, volatility management, and portfolio hedging, leading to reduced volatility and altered risk-reward dynamics as institutional flows increase.
Read at 24/7 Wall St.
Unable to calculate read time
Collection
[
|
...
]