How Can a Miner Use a 'Short Call' Option Strategy to Generate Additional Income While Holding Their Mined Crypto? ▴ Learn

How Can a Miner Use a ‘Short Call’ Option Strategy to Generate Additional Income While Holding Their Mined Crypto?

A miner can employ a 'Covered Call' strategy, which involves selling (writing) a Call option against an equal amount of the underlying cryptocurrency they already hold. They receive the option premium upfront, which generates immediate income.

The risk is that if the crypto price rises above the strike price, the miner is obligated to sell their holdings at the strike price, forfeiting potential upside gains.

What Is the Primary Purpose of Selling (Writing) a Covered Call Option?

What Is a ‘Covered Call’ Strategy and How Does It Benefit a DAO Treasury?

What Is a Covered Call Strategy and How Could a DAO Use It on Its Native Token Holdings?

Explain the Concept of a ‘Covered Call’ Strategy