> For the complete documentation index, see [llms.txt](https://docs.valantis.xyz/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.valantis.xyz/prime/discounts/strategies/covered-calls.md).

# Stack Yield with Covered Calls

Deposit wstHYPE into a supported Rysk covered-call market to combine:

* stHYPE staking yield.
* Option premium.
* The Prime staking tier on trading elsewhere.

wstHYPE held in Rysk counts toward Prime eligibility.

## What you are selling

A covered call pays premium in exchange for agreeing to sell the wstHYPE at the selected strike if the option expires in the money. The strategy earns more income when implied volatility and option premium are high, but it caps upside above the strike.

## The five-day tier risk

If a call finishes in the money, the wstHYPE can be sold at the strike. If that sale takes your eligible balance below the Prime tier requirement, the 5-day notice period begins.

Refill the holding requirement within those five days and the notice resets. If you do not refill it, you risk losing the discount and entering the Prime unstaking lifecycle.

## Safer sizing

* Write calls only on wstHYPE held above the tier threshold.
* Keep a tier buffer large enough for likely assignments, withdrawals, and balance changes.
* Treat the premium as compensation for capped upside, not as guaranteed APY.
* Choose strikes based on the price at which you are genuinely willing to sell.

## When it fits

* You are structurally long HYPE and willing to sell at a higher strike.
* You want additional income without giving up the tier before assignment.
* You can refill the requirement within five days if assignment reduces the eligible balance.

## Risks

* Upside is capped above the strike.
* Option premium varies by strike and expiry.
* Assignment can create a taxable sale and a Prime tier shortfall.
* Rysk, stHYPE, settlement, and smart-contract risks remain.

See [Rysk documentation](https://docs.rysk.finance/getting-started/protocol-and-product/how-to-use-rysk) for current market mechanics.