How Does a DAO Select the Optimal 'Strike Price' for a Covered Call? ⎊ Path

How Does a DAO Select the Optimal ‘Strike Price’ for a Covered Call?

The DAO selects a strike price based on its price outlook and desired risk-reward balance. A higher strike price yields a lower premium but offers more upside potential before the token is called away.

A lower strike price yields a higher premium but caps the upside sooner. The optimal strike price balances premium income against the risk of forfeiting future price gains.

How Does a Covered Call Differ from a Protective Put Strategy?

How Does an In-the-Money Covered Call Differ from an Out-of-the-Money Covered Call?

How Does a DAO Treasury Use a ‘Rolling’ Strategy for Covered Calls?

How Does the Yield Generated from Staking Compare to the Premium Earned from Selling Covered Call Options?

What Is the Trade-off between Premium Size and Strike Price Selection?

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

How Does the Strike Price Impact the Risk/reward of a Covered Call?

What Is a “Covered Call” Strategy and How Does It Relate to Yield Generation on a Crypto Asset?