Give an Example of a 'Covered Call' Strategy ⎊ Path

Give an Example of a ‘Covered Call’ Strategy.

A covered call involves a trader owning 100 shares (or 1 unit of the underlying crypto asset) and simultaneously selling one call option against those shares. For instance, owning 1 BTC and selling a call option on that 1 BTC.

The owned asset "covers" the obligation to sell if the call is exercised. This strategy generates income from the premium.

Why Is a Naked Call Option Considered Riskier than a Covered Call Option?

What Is the Cost-Benefit Analysis of Owning Vs. Renting Co-Location Space?

What Is the Difference between an Unhedged Long Position and a Covered Call’s Loss Profile?

Give an Example of Data an Oracle Might Feed to a Bitcoin Options Contract

What Is the Difference between Writing a Covered Call and a Naked Call?

How Can a Crypto Holder Use a “Covered Call” Strategy?

How Does Selling a Covered Call Limit the Seller’s Risk Profile?

If an Option’s Premium Is 0.05 BTC and Its Intrinsic Value Is 0.02 BTC, What Is Its Time Value?

Glossar

Covered Call

Strategy ⎊ This involves selling a call option on an asset that the investor already owns, thereby generating immediate income against potential appreciation.