Covered Call vs Strike Price

A yield-enhancement strategy combining a long spot position with a sold call option on the same asset; the short call is covered by the underlying position, eliminating naked short risk; generates premium income at the cost of capping upside at the strike price.

The fixed price at which the holder of an options contract has the right to buy (call) or sell (put) the underlying cryptocurrency asset; also termed exercise price; determines moneyness (in-the-money, at-the-money, out-of-the-money) at any given moment.