Volt#01: Generate Income
Covered Call Overwriting
A covered call position involves holding a long position in a particular asset, for example, SOL, and writing a call option on that same asset with the goal of realizing additional income from the option premium. This Volt writes covered call options on leading tokens.
By selling covered calls, you profit from high upside volatility and generate returns on top of your long position while markets are moving lower.
This strategy is most useful to trade price upside on your token for a periodic premium. Profits in most markets, outperforms the underlying asset in bear markets, and retains exposure to upside in bull markets.
Explore the math behind the strategy in this Medium article:
The Volt rebalances weekly at Friday 2am UTC. An epoch consists of holding a short call position until expiry. If there are net deposits, the volt will sell more options in the following week. If there are net withdrawals, the volt will sell fewer options.
All strategy performance and returns data can be easily found on our Analytics page linked below. To find a tutorial and guide for this, you can visit the Analytics page of our Documentation.
High voltage represents increased risk, defined by a higher probability of the option being exercised. In return for taking on increased risk, expected option premiums are higher, resulting in higher APYs. In flat markets, tactical traders can use Higher Voltage to increase their risk and reward.
Volt#01: High Voltage
Video from our partners at Genesis Volatility, explaining how Covered Calls are the OG form of yield farming!
Genesis Volatility
Last modified 5mo ago