Skip to main content

What Is a Covered Call Options Strategy and How Can a DAO Treasury Use It for Yield?

A covered call strategy involves holding an asset (like the DAO's native token) and simultaneously selling a call option on that same asset. The DAO collects the premium from selling the option, generating immediate income.

This is a conservative yield strategy, as the treasury risks having its tokens "called away" (sold) if the price rises above the strike price.

Explain the Concept of a ‘Covered Call’ Strategy
How Can a Crypto Holder Use a “Covered Call” Strategy?
Explain the Concept of a ‘Covered Call’ Strategy for a DeFi Treasury
What Is the Primary Purpose of Selling (Writing) a Covered Call Option?