A covered call pairs a share you own with a call option you sell on it. You collect premium now. In exchange, if the price closes above the strike, your share is called away at the strike and you give up the upside beyond it.
Share + written callShare alone
What the vault does
- Holds your tokenized shares as collateral. The share itself is the collateral for the written call.
- Writes calls against them, with automatic strike selection and rolling.
- Chooses strikes and expiries from rules published on-chain for this vault, fixed for each epoch.
- Streams the premium to you per second over the life of each option.
Outcomes at expiry
| Price at expiry | What happens |
|---|---|
| Below the strike | The call expires. You keep your shares and all premium streamed so far. |
| Above the strike | The call is exercised. Your shares are delivered at the strike, and you keep the premium. |
Why it can't be liquidated
The written call is fully covered by the share it is written on. There is no borrowed amount and no margin call. The worst outcome, giving up upside above the strike, is known before you deposit.