What Is a “Covered Call” Strategy in the Context of a Cryptocurrency Holding?

A covered call is an options strategy where an investor holds a long position in a cryptocurrency (the underlying asset) and simultaneously sells (writes) a call option on that same asset. The "covered" part means the investor owns the crypto to deliver if the option is exercised.

The goal is to generate income from the premium while mildly limiting potential upside profit if the price rises sharply.