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

A covered call strategy involves holding a long position in an asset (the DAO's native token) and simultaneously selling a call option on that same asset. The DAO receives the option premium upfront, generating immediate, non-dilutive income.

This is a conservative strategy used when the DAO is moderately bullish or neutral on its token price, accepting a capped upside profit in exchange for a predictable revenue stream and a small hedge against price decline.