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Give an Example of a ‘Covered Call’ Strategy

Owning the underlying asset (e.g. 1 BTC) and selling a call option on that same amount of the asset.
Greeks.Live02.11.25

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.

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