Covered Calls: MSTR; IBIT & swapping in my self-custody BTC...
Right now my holdings are 45% BTC and 55% MSTR.
I like MSTR primarily because it's basically built on BTC + volatility, and I use that to sell covered calls (CCs) for juicy premiums.
I haven't sold any CCs on my BTC because it's in a cold wallet, but if I did, I might swap it in for IBIT. Problem is... premiums on IBIT for essentially the same MSTR trade are only at about 60% of the value, so e.g. if I generated $10 in MSTR premiums, I'd likely only get around $6 for it on IBIT.
Thing is, ultimately I like BTC more than MSTR since MSTR is an equity and is subject to the whims of a management team, so eventually I'd like to move everything into BTC, which means I can't generate those juicy CC premiums with MSTR in due course.
Question is: am I stupid for thinking of trading in my self-custody BTC for IBIT, just so I can generate some premium with BTC?
FYI the amount I can generate in MSTR (or even IBIT) premiums could potentially fund my current lifestyle without having to work, so without selling CCs it feels like I'm leaving money on the table.
Posted Jun 3, 2025, 7:51 AM UTC