> For the complete documentation index, see [llms.txt](https://docs.kyte.sh/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.kyte.sh/guides/sell-call.md).

# Sell a covered call

Lock tokens, set your terms and earn the premium upfront.

Page: [kyte.sh/sell](https://kyte.sh/sell) → **Covered call**

{% stepper %}
{% step %}

### Choose the token and amount

Pick the **token** and the **amount** to lock.
{% endstep %}

{% step %}

### Set the strike

Set the **strike per token (ETH)**. The chart shows the current price and your strike as a line.
{% endstep %}

{% step %}

### Set the timing

* **Expires in**: 1 day, 3 days, 1 week, 2 weeks, 30 days or 90 days.
* **Offer can be filled for**: 6 hours, 1 day, 3 days, or until expiry.
  {% endstep %}

{% step %}

### Set the premium

Set the **premium (total, ETH)**. The page shows a Black-Scholes premium hint for reference only. It is never enforced.
{% endstep %}

{% step %}

### Review and sign

Review what you lock, the fee preview and what you receive, then sign:

1. an `approve` of the token to the CallMarket, if your allowance is too low, then
2. `CallMarket.createOffer(token, amount, strike, premium, expiry, offerDeadline)`.

Every contract rule is checked in the browser before you sign, and every transaction is simulated first.
{% endstep %}
{% endstepper %}

## Outcomes

| What happens               | You receive                                               |
| -------------------------- | --------------------------------------------------------- |
| Filled                     | Premium − 3% fee, in WETH, at fill time                   |
| Exercised                  | Strike − 0.1% fee, in WETH. Your tokens go to the holder. |
| Expires unexercised        | Your tokens come back (anyone can trigger `expire`)       |
| Not filled by the deadline | Click **Reclaim** on Positions to get your tokens back    |
| You cancel before a fill   | Tokens come back immediately                              |

{% hint style="success" %}
**Worked example.** You lock 100,000 TOKEN with a total strike of 3 ETH and a premium of 0.1 ETH.

* A buyer fills: you get **0.097 WETH**, the FeeVault gets 0.003.
* The buyer exercises with 3 ETH: you get **2.997 WETH**, the FeeVault gets 0.003, the buyer gets the 100,000 TOKEN.
  {% endhint %}


---

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