What Is the Opportunity Cost of Selling a Covered Call?

The opportunity cost of selling a Covered Call is the potential profit that is forgone if the underlying cryptocurrency's price rises significantly above the Call Option's strike price. By selling the Call, the investor has obligated themselves to sell the asset at the strike price.

If the market price surges far beyond that strike, the investor misses out on all the appreciation above the strike price, which is the cost of having collected the premium and limited the downside risk.