An example of call overwriting is when an investor owns one bitcoin and sells a call option on it at a strike price that’s higher than the current market price. For example, giving the option buyer the right to purchase the bitcoin at, say $20,000, when the current price is $16,400. If the price tops $20,000 before the option expires, the option buyer has an opportunity to make a profit.
Source: https://www.coindesk.com/markets/2022/11/25/matrixport-favors-systematic-bitcoin-call-overwriting-strategy-for-2023/?utm_medium=referral&utm_source=rss&utm_campaign=headlines