Understanding Call Options and How It Works

What is a Call Option?

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 of the option can exercise the option at any time prior to the expiration date specified in the contract. The expiration date can vary from three months to two years.

A call option buyer profits when the underlying asset increases in price. The specified price is known as the strike price, and the specified time during which a sale is made is its expiration or time to maturity. The fee to purchase a call option is called premium. The premium is the maximum you can lose on a call option. Call Options only last for a limited period of time. If the market price of the underlying asset does not rise above the strike price during the period of the contract, the options expire and you lose the premium you paid to buy the contract. You would buy a call option if you anticipate that the price of the underlying asset is going to rise above the strike price before the expiration of the contract.

How Infinity Call Option Works?

When you buy an Infinity Call Option, you pay a Premium using $EDGE. The Premium you paid gives you the right but not the obligation to buy Infinity($INFI) at a specified price within a specific time period. The call option buyer profits when Infinity($INFI) increases in price or surpasses the breakeven price before the expiration of the contract.

*Note: Infinity Hedge($EDGE) is a Stablecoin (pegged to $1) like USDT. The main purpose of this coin is for buying Infinity Call Options Smart Contract. The current price of INFI is 0.01 EDGE.

For example, buyer bought a smart contract for a Premium of 900 EDGE (10% of the total cost) which gives the buyer the right, but not the obligation to buy 900,000 INFI for 9,000 EDGE at a strike price of 0.01 EDGE on or before 10/20/2023.

*Note: Breakeven is the sum of the Strike Price and Premium.

If the price of INFI surpasses the breakeven price of 0.011 EDGE before the expiration of the contract, the buyer profits from the call option. The buyer can exercise the call and buy INFI at the strike price, or in other words, at a price that is below the market value. The buyer can either keep the coins or sell them for a profit. But if the price goes down or does not surpass the breakeven price, you let the call option expire. In this case, you only lose the money you put in to buy the premium.

Why Buy Infinity Call Option?

Infinity Call options help reduce the maximum loss an investment may incur, unlike trading crypto, where the entire value of the investment may be lost if the price drops to zero. It limits the risk to only the cost of the premium. It is the smartest way to diversify your investments. Infinity Call Options give investors years to see their investment grow without having to put down the total sum. You keep your cash for the duration of the contract, since you only have to pay the premium which is around 10% for a 2-year contract. This allows you to make several investments at the same time. Infinity Smart Contracts are created for investors in the crypto world who wants to profit the most by taking the smallest risk possible.

“With Infinity Crypto, the risk is limited, and the gains unlimited.”

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Infinity Crypto

Infinity Crypto

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The Infinity project aims to create a cryptocurrency that not only simplifies people’s lives but also protects them from economic crisis & inflation.