Strive Bitcoin Fund Offers 16.7 Percent Income Using Options Strategy
(3 hours ago) · 1 source · Summarized by CryptoBipto
Strive Asset Management has launched a Bitcoin income fund advertising a 16.7% annualized yield. The fund generates income by selling covered call options on Bitcoin holdings, a strategy that caps potential upside in exchange for regular premium payments.
WHY IT MATTERS
Bitcoin does not pay dividends or interest the way stocks or bonds can. So when a fund offers a high income yield on Bitcoin, it is worth understanding where that money comes from. In this case, the fund uses a technique called a covered call strategy. Think of it like renting out a room in your house — you earn rental income, but you give up some control over that space. Here, the fund sells the right for someone else to buy its Bitcoin at a set price in the future. In exchange, the fund receives cash payments called premiums, which it passes along to investors. The downside is that if Bitcoin's price jumps above that set price, the fund misses out on those extra gains. This is not free money — it is a trade-off between income now and potential growth later.
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