149 [Terra] Friktion - Killer Crossover, Mvmt. I: LUNA/Solana
Question 149: Friktion on Solana offers a “covered call” strategy for numerous assets, including LUNA. This strategy’s overall return depends on how often the call options are exercised, i.e. how often LUNA ends up above the strike price of the option. Determine how many weeks during the past month that LUNA’s price has increased more than 15% in a 7-day period. Based on this performance, what insights or implications can you draw about the true profitability of a LUNA covered-call strategy?