MSTR Covered Calls
What Are MSTR Covered Calls?
MSTR covered calls are an income strategy where investors own at least 100 shares of MicroStrategy (MSTR) stock and sell call options against those shares to generate premium income.
This strategy allows shareholders to collect cash upfront while agreeing to potentially sell their shares at a specific strike price before the option expires.
Example:
- Own 100 shares of MSTR
- Sell 1 call option
- Collect premium
If MSTR stays below the strike price, the option expires worthless and you keep both your shares and the premium.
If MSTR rises above the strike price, your shares may be called away, but you still profit from the premium plus stock gains up to the strike.
