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

The strike price is chosen based on price outlook, balancing the higher premium from a lower strike against more upside potential from a higher strike.
Greeks.Live15.11.25

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.

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