What Is the Main Benefit of Writing a Covered Call on a Governance Token? ▴ Learn

What Is the Main Benefit of Writing a Covered Call on a Governance Token?

The main benefit is generating passive income from the premium received. By selling the call option, the holder immediately receives cash, which lowers their effective cost basis for the tokens.

This is an attractive strategy for long-term holders who are comfortable with capping their potential upside in exchange for a guaranteed income stream, especially in a market where they expect the price to remain relatively stable.

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