Grayscale: The covered call strategy on Zcash has an implied annualized yield of around 70%, but carries higher risk than Bitcoin.
2026.09.09 22:43:25
Grayscale Research Head Zach Pandl noted that as Bitcoin matures, its price volatility has declined significantly. Bitcoin’s realized annualized volatility stood at roughly 125% in its early years, while averaging just 40% over the past year—near the level of the U.S. "Magnificent Seven" tech stocks. By comparison, Zcash has a market capitalization of only about 1% of Bitcoin’s, with an average price volatility of around 140% over the past year. Based on current volatility calculations, a covered call option strategy for Zcash would yield an implied annualized return of roughly 70% from premium income, versus about 30% for the same strategy applied to Bitcoin. Pandl cautioned that higher potential returns come hand in hand with greater risks: if the spot price falls more than the premium received, the covered call strategy will still result in principal losses. Investors seeking a clear risk-reward profile may consider going long on call or put options.
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