In the case of a tax loss sale, an investment is sold and a new investment is purchased to replace the investment
in that particular asset class shortly after.
Generally, with many markets at different levels of valuation in terms of attractiveness, we increasingly want to be very specific with the exposures we might be
getting in particular asset classes.
In my case, I like to buy 5 tranches of a position over a 3 - 6 month period of time once I believe there is
value in a particular asset.
A covered call option involves holding a long
position in a particular asset, in this case shares of an ETP, and writing a call option on that same asset with the goal of realizing additional income from the option premium.
In an interview with Nathaniel Poppers of the New York Times, Korbit founder and CEO Tony Lyu stated that in the South Korean finance market, if the popularity of an asset spikes and a few people are invested in it, the vast majority of the market and investors rush to invest
in that particular asset, in a desperate attempt to follow the trend.
For casual investors and newcomers, it is extremely risky to obtain debt to invest
in a particular asset and this is not exclusive to Bitcoin.