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What Is the Maximum Profit Potential for a DAO Implementing a Covered Call Strategy?

The premium received from selling the option plus the token's price appreciation up to the option's strike price.
Greeks.Live14.11.25

What Is the Maximum Profit Potential for a DAO Implementing a Covered Call Strategy?

The maximum profit for a DAO using a covered call strategy is limited to the premium received from selling the call option plus the profit from the underlying asset's price appreciation up to the strike price. If the token price rises above the strike price, the DAO's profit is capped because the call option will be exercised, forcing the sale of the asset at the strike price.

The profit is calculated as: (Strike Price – Original Purchase Price) + Premium Received.

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