A covered call is a two-part strategy: a long on a spot asset (e.g. holding ETH) and selling call options (e.g. writing an ETH call) of the same asset to earn premiums from option buyers. Covered calls are partially hedged when the calls go in-the-money, as the long spot position continues benefiting from higher prices while the short call position loses more value as prices go up. This strategy performs best in a bearish or neutral market as the calls sold stay out-of-the-money.
