Covered call
BullishLimited profitLimited loss
Hold spot, sell a call against it for income; upside capped.
Payoff at expiry — live BTC example
Net debit
$76,741
Max profit
$1,259
Max loss
$76,741
Breakeven
76,741
Example legs (0.7 DTE front)
- Buy spot
- Sell 78,000 call
Entry greeks (per 1 BTC notional): Δ 0.793 · Γ -0.1655 per 1% · vega $-9.40/pt · theta $285.67/day
How it works
Long spot plus a short OTM call: the call premium is income, and if price rallies through the strike the spot is effectively sold there.
When to use it
You hold the underlying anyway and expect a grind, not a moonshot. Rich call IV improves the trade.
Risks & management
Full downside of the spot remains (minus one premium). The real cost shows up in bull runs, where upside beyond the strike is given away.
Related structures
Example built from live Delta Exchange BTC marks on the nearest constructible expiry; numbers refresh with the chain. Educational content, not investment advice.