Explain How a Covered Call Strategy in Traditional Finance Limits Upside Similar to IL

A covered call strategy involves holding a long position in an asset (e.g. 100 shares of stock) and simultaneously selling a call option on that same asset.

The sale of the call option generates premium income, similar to LP fees. However, if the asset's price rises significantly above the call's strike price, the long stock is "called away," capping the profit.

This capped upside mirrors impermanent loss, where a liquidity provider's upside is limited compared to simply holding the asset.