Infinity Call Option Trading Strategy
Updated: Dec 28, 2021
A Call Option is a financial contract that gives the buyer the right but not the obligation to buy an asset, at a specified price within the time period of the contract. The buyer can execute the option at any time within the duration of the contract. The expiration date of the contract can vary from three months to two years.
Click the link below to learn more about Call Options. Article: Understanding Call Options and How It Works
Early supporters who downloaded the Infinity Wallet app, and signed up on our website at infinitysolutions.io prior to the month of November will receive a Smart Contract Call Option that costs $50 for free. Terms: 10,000 INFI for $0.05 per coin, and the expiration of 520 days. Lowest Available Smart Contract Call Options as of October 27th, 2021. 1000 INFI at 1$ Premium for 0.01 per INFI => expiration 03 FEB 2022 10,000 INFI at 10$ Premium for 0.01 per INFI => expiration 15 FEB 2022
How to make a $945 profit with only 5 HEDGE (5 USD) maximum risk?
The investor will buy 5 call options at $1 premium each. This will limit the maximum risk of the trade to 5 HEDGE (5 USD). For only $5, the buyer of the call option will have the right but not the obligation to buy 5,000 INFI at a strike price of 0.01 HEDGE per coin. This means that if the buyer wishes to execute the call option, it will cost the buyer 50 HEDGE (5,000 INFI x 0.01 HEDGE = 50 USD).
Note: HEDGE is a stable coin that is pegged to 1 USD ( 1 HEDGE = 1 USD). It is primarily used in the Infinity Blockchain to buy and execute Smart Contract Call Options.
Call Option Trade #1
Let’s say the price of INFI reaches 0.1 HEDGE in the market. This means that its market value is now ten times its initial value of 0.01 HEDGE. The buyer of the call option executes the smart contract for 50 HEDGE and receives 5,000 INFI. The buyer sells the 5,000 INFI on the market and receives $500.
Call Option Trade #2
Execute the Smart Contract Call Option that you have received for free. This will give you the right to buy 10,000 INFI at a strike price of 0.05 HEDGE. This means that it will cost you $500 to execute the call option. But since you have already earned $500 from your first trade, you can use that you execute the call option. By executing the call option for $500, you will receive 10,000 INFI. After selling it in the market for 0.1 HEDGE per INFI. You will receive $1,000. If we deduct your capital which is $5 for the premium and $50 to execute your first trade. Your total profit is a staggering $945 for an initial investment of only $5.
But what if the price of INFI did not go up? Then you can let your call option expire. In this case, you only lose the amount that you have used to pay for the premium which is $5.
Conclusion: In this strategy, the risk is limited to only $5. But you can earn up to $945, or even more.
“With Infinity Crypto, the risk is limited, and the gains unlimited.”