Ever sold a call, watched the market rip, and realized the premium was the cheap part?
That’s the trade-off behind a covered call.
A covered call pairs:
• a long $BTC position
• a short call option
You collect the option premium upfront.
If price stays below the strike at expiry, the call expires without value and the premium stays with you.
If price climbs above the strike, losses on the short call start offsetting gains on your Bitcoin position.
Your upside gets capped.
And if price drops hard?
The premium gives you a small cushion. It does not turn the position into real downside protection.
Example:
Bitcoin at 65,000 USD
Sell a 70,000 call for 1,000 USD
Below 70,000 at expiry: you keep the premium.
Far above 70,000: the short call starts eating into the rally.
That 1,000 USD was income.
It was payment for giving away part of the upside!
August 16, 2026 195 3
