Covered Call
You already hold the coin (BTC/ETH) and think there won't be a big rally. You sell others a "reservation" to buy your coin a bit above market and get paid for it right away — like renting the asset out for income while it sits still.
How the Covered Call works
Selling a call against an asset you already hold collects a premium up front. If price stays below the strike you keep both the asset and the premium. If it rises above, the asset is called away at the strike, but you still profit (strike − entry + premium).
The premium lowers your effective entry, giving a small cushion on drawdowns, but it caps your upside at the strike.
When to use it
When you hold BTC/ETH long term and expect a range or mild rally — the strategy generates recurring premium income. In a strong rally you give up the upside above the strike.
Placing the strike at GEX levels
Sell the call at the Call Wall. Place the sold-call strike at the largest positive-GEX strike (the Call Wall), where rallies often stall and the odds of being called away are lower.
Selling premium pays best when IV is high, and the ideal regime is positive GEX (green hedging pressure) with price in a range.
The Call Wall and hedging pressure for BTC and ETH are visible live in the GEX Terminal — pick the strike in the Position Builder.
When to open, the Greeks and managing the position
A strategy for a stable, sideways or mildly rising market — long-term investors use it to generate income on a portfolio by systematically collecting premium. The premium lowers the effective entry (breakeven = purchase price − premium) and cushions a moderate drop.
Greeks: positive theta works for the seller — each day of decay adds income. Management: if price rises above the sold call's strike you must deliver the asset and miss further upside; to avoid it, roll the call up in strike and/or out in time.
FAQ
The same downside as owning the asset (down to zero), but the premium slightly lowers your effective entry. Upside is capped at the strike.
Yes — you collect the premium from the sold call; in a range this is recurring income on the asset you hold.
Build the Covered Call on live BTC and ETH quotes in the Position Builder.
Open the Position BuilderRelated strategies
Information is for educational purposes only and does not constitute investment advice. Options trading carries high risk.