Grayscale says covered calls could generate 22% annualized return if BTC trades sideways

Grayscale said Bitcoin holders could generate an annualized return of around 22% through a covered call strategy if BTC remains range-bound. The strategy involves holding spot Bitcoin while selling call options to collect option premiums. Zach Pandl, Grayscale’s head of research, said if Bitcoin enters a sideways phase rather than rebounding immediately after forming a bottom, a covered call strategy could help partly mitigate spot-price volatility risk. Assuming a BTC spot price of $65,000 and implied volatility of 40% at the end of next year, the strategy could deliver an annualized return of about 22%, Pandl said. He added the strategy would remain profitable above roughly $58,500 and could outperform a simple spot holding until BTC reaches about $72,500 at the option’s expiration.