top of page

An ETF that sells call options on Coinbase - 20%+ Yield?!


$CONY is an ETF that seeks to generate monthly income by selling call options on Coinbase stock (COIN). Call options are contracts that give the buyer the right to buy a stock at a certain price by a certain date. In return for selling the call options, CONY receives a premium from the buyer.



If the price of COIN shares rises above the strike price of the call options, the buyer of the options can exercise their right to buy the shares from CONY at the strike price. CONY will then have to buy the shares at the market price and deliver them to the buyer. If the price of COIN shares does not rise above the strike price of the call options, the options will expire worthless and CONY will keep the premium.

CONY is a complex investment product and there are a number of risks associated with investing in it. Some of the key risks include:

  • Market risk: The price of COIN shares could decline, which would result in a loss for CONY.

  • Options risk: CONY is exposed to the risk that the price of COIN shares could rise above the strike price of the options, which would force CONY to buy the shares at the market price and deliver them to the buyer, which could result in a loss for CONY.

  • Counterparty risk: CONY relies on other parties, such as the buyers of the call options and the brokers that execute the trades, to fulfill their obligations. If one of these parties fails to meet its obligations, CONY could suffer losses.


This is not financial advice and you should consult with a financial professional before making any investment decisions. Investors should carefully consider their investment objectives and risk tolerance before investing in $CONY.


If you are interested in learning more about options trading, please join our Discord community: https://discord.gg/optionstrading

51 views0 comments

留言


bottom of page