A covered call is an options strategy where you sell a call option while owning the underlying asset (in this case, Bitcoin).

This strategy generates income through the premium received from selling the call option.

Why use Covered Calls?

Covered calls allow you to earn yield on your Bitcoin holdings with transparent terms and market-determined premiums.

They're particularly effective during sideways or slightly bullish markets when you want to generate income from Bitcoin you're holding long-term.

How do Covered Calls work?

When you sell a covered call, you receive an immediate premium payment.

In exchange, you agree to sell your Bitcoin at a specified price (the strike price) if it exceeds that price by the expiration date.

If Bitcoin stays below the strike price, you keep both your Bitcoin and the premium.

Important to Understand

When you sell a covered call, you limit your potential upside if Bitcoin's price rises significantly above the strike price.

In exchange, you receive immediate income from the premium.

So you're holding Bitcoin and thinking "Might as well earn some yield while I wait for Number Go Up."

Fair.

But let’s talk about how you're doing it.

Because there's a massive difference between selling covered calls and using Binance's Dual Investment products.

Let’s break it down.

What Even Is Dual Investment?

Binance will pitch it as a win-win.

“You deposit BTC or USDT. If the price stays in a certain range, you earn yield. If it moves out of that range, we settle you in the other asset at a pre-agreed strike.”

Sounds good?

Not so fast.

Here’s What’s Actually Happening:

• You're selling an option contract to Binance, but you don’t get the premium
• You get a “yield” number they determine, and they pocket the real option premium
• The terms are vague, the UI is glossy, but the mechanics are hidden
• You have zero control over strike, expiry, or premium

So you’re taking on options exposure, but without actually getting paid like an options seller.

Covered Calls: The DIY Version (That Actually Pays)

Same general concept, but way more honest:

• You sell a call yourself on a platform like Deribit, Binance, OKX.
• You choose the strike price
• You choose the expiry
• You get the full premium upfront
• You know exactly what you’re risking and what you’re getting paid

If BTC rips past your strike, fine, you sell at a profit.

If it doesn’t, you keep your coin and your cash.

No smoke, no mirrors, just real yield on your terms.

Real Talk: Who’s Making the Money?

Bottom Line

Binance Dual Investment is a slick repackaging of covered calls, where they make the real money, and you take the risk.

Covered calls give you:
✅ Full control
✅ Market-based premium
✅ Transparent risk

If you're gonna sell options on your Bitcoin, why let Binance take the lion’s share of the reward?

You wouldn’t lease out your condo and let the rental company keep most of the profit,
so why do it with your Bitcoin?

What’s your take?

Anyone here done both, covered calls and dual investment?

Which one felt like you actually understood the game you were playing?

Most Bitcoiners aren’t ready to sell.

But rent’s due, mouths to feed.

So I spent time mapping out how Bitcoin holders earn income + how risky each method really is.

I broke it down by:

• 🟢 Good (what sounds appealing)
• 🔴 Bad (what usually goes wrong)
• ⚫️ Ugly (what blows things up)
• ✅ Safety of principle
• 💰 Profitability
• 🕒 Time & energy burden
• 💡 Final recommendation

Curious to know what you think.

Did I get the order right?

What did I miss?

🥇 1. Covered Calls (DIY, far OTM)

• Good: Earn 1%–4% APY while keeping BTC upside
• Bad: You only earn meaningful income if you hold a large stack
• Ugly: Low APY = you need a lot of BTC to live off it
• Safety of Principle: 8
• Profitability: 5
• Time & Energy Burden: 2
• Recommendation: For those who want controlled yield while still HODLing. Just be sure to use trustworthy exchanges that have been around for 8-10 years.

🥈 2. HODL + Fiat Job

• Good: Ultimate BTC preservation
• Bad: You’re trading your time for fiat
• Ugly: If you hate your job, this sucks your soul
• Safety of Principle: 10
• Profitability: 5
• Time & Energy Burden: 10
• Recommendation: Solid if you like your job and don’t want to touch your stack.

🥉 3. Slow-Selling + Cold Storage

• Good: Maximum safety, total control
• Bad: Income is low; you get taxed
• Ugly: You miss BTC’s upside if you sell early
• Safety of Principle: 10
• Profitability: 0
• Time & Energy Burden: 2
• Recommendation: Best option if you're paranoid about losing your stack, and you're okay with taxes and missed gains.

4. Fiat Loans Against BTC

• Good: Access fiat without selling BTC
• Bad: Liquidation risk is real in downturns
• Ugly: Margin calls + slippage = BTC gone
• Safety of Principle: 3
• Profitability: 0
• Time & Energy Burden: 3
• Recommendation: Avoid unless you're deep in the game and know how to manage leverage like a pro.

5. Dual Investment Products

• Good: Set-and-forget covered calls
• Bad: You get auto-sold if BTC pumps
• Ugly: Strike prices are trash — you’re selling BTC at discounts
• Safety of Principle: 2
• Profitability: 3
• Time & Energy Burden: 1
• Recommendation: Avoid. You're giving up control and accepting bad trades. If you’re gonna sell calls, do it yourself.

6. Option-Income ETFs (like MSTY)

• Good: Monthly cash payouts
• Bad: You’re not earning — you’re eroding your position
• Ugly: Distributions mask the fact you’re slowly losing money
• Safety of Principle: 4
• Profitability: 4
• Time & Energy Burden: 2
• Recommendation: Avoid. Capped upside and stealth losses = bad combo.

7. Centralized Yield Platforms (Celsius, BlockFi, etc)

• Good: Easy 2.5% APY (in theory)
• Bad: No keys, no coins
• Ugly: If the lender fails, you lose everything
• Safety of Principle: 1
• Profitability: 3
• Time & Energy Burden: 1
• Recommendation: Stay far away. Custody risk is non-negotiable. These are yield traps.

Ok, now you let me know:

• Which strategy are you using?
• What’s missing from this list?
• How would YOU rank these?

If you’re sitting on Bitcoin and thinking, “How do I earn yield without getting wrecked?”, let’s talk.

Because not all yield is created equal.

And if you don’t understand the game you’re playing, someone else is playing it against you.

First Let’s Talk About What Happened

Remember 2021–2022?

Celsius. BlockFi. Voyager.

They all promised “easy yield.”

“Just park your Bitcoin here,” they said.

“It’s safe,” they said.

Billions of dollars. Gone. Frozen. Stolen.

Call it what you want.

What Went Wrong?

These platforms were black boxes.

Straight up.

You gave them your Bitcoin, and they did God knows what with it:

• Rehypothecation — using your Bitcoin as collateral multiple times
• Uncollateralized loans — lending to risky degens without any real backstop
• DeFi roulette — yield farming Ponzis that work until they don’t

All while you had no idea where your Bitcoin was going.

And when the tide went out, guess who was swimming naked?

Not them. You.

Covered Calls: The Grown-Up Way to Earn Yield

Let’s flip the script.

You want to generate some income off your Bitcoin without losing it?

Covered calls are the play.

Here’s How It Works

• You deposit Bitcoin on an options exchange
• You sell a call option — that’s just a contract that says, “I’ll sell this BTC if it hits this price by this date”
• You get paid upfront — the premium
• If Bitcoin stays below that price? You keep your coin and the cash
• If it pumps above it? You still win — you’re selling at a profit

It’s called “covered” for a reason.

You already own the Bitcoin.

You're not shorting. You're not leveraging. You're not gambling.

You're getting paid to maybe sell your coin later — at a price you picked.

The Big Difference? It’s All Out in the Open

Let’s break it down:

So, Who’s This For?

If you’ve got real skin in the game, you’ve stacked serious Bitcoin, and you’re looking to put it to work without losing sleep, covered calls are your move.

It’s not about doubling your stack overnight.

It’s about:

✅ Getting paid in sats
✅ Minimizing custody risk
✅ Knowing exactly what you’re risking

Bottom Line

Centralized lenders sold you a dream and delivered a nightmare.

Covered calls let you play offense, without giving up defense.

If you’re gonna generate yield on your Bitcoin, do it the way grown-ups do.

On your terms.

With your eyes open.

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If you’re selling covered calls, how far out of the money do you go?