Covered Call Strategy

Monetizing clients' digital asset inventory

Flowdesk Treasury Management Services

In addition to providing industry-leading market making solutions, Flowdesk offers treasury management services designed to generate returns on digital assets based on client risk profiles. We work closely with each team to design treasury management strategies that align with their short-term revenue goals and long-term company vision. We have a conservative risk management approach and use industry-leading security measures for all custody solutions.

Covered Call Strategy

A covered call strategy allows clients to monetize their digital asset inventory. The options strategy generates returns by selling out of the money call options (typically 10 to 20% OTM) on predefined digital assets. The goal of selling a covered call option is for the option to expire worthless, allowing the client to earn the option’s premium while keeping 100% of the underlying asset.

Key Benefits For Clients

• Monetize unused treasury/digital asset inventory.

• Reduce underlying asset price volatility.

• Trade with a single regulated counterpart.

Risk

The call options expire in the money (the price of underlying is above the option strike price at expiry), resulting in the client selling the asset at the strike price to Flowdesk instead of the higher market price.