Goldman Sachs Teaches You How to Collect Rent: From Covered Call Strategies to Bull and Bear Gains, Bitcoin's Cash Flow Secrets

Writing by: Liu Jiao Lian

Goldman Sachs, the Wall Street giant that once criticized Bitcoin, has now quietly submitted an IPO prospectus to launch a new fund called Goldman Sachs Bitcoin Premium Income ETF[1]. Jiao Lian took a look and found that Goldman Sachs isn’t playing a simple spot ETF game; instead, it’s using a strategy called covered call to turn Bitcoin—a volatile asset—into a yield product that pays out regularly.

So what does that mean? It means that those suit-wearing fund managers on Wall Street have finally started figuring out how to make Bitcoin, that “old hen,” not only grow bigger, but also lay eggs—earning interest every month and swapping it for a bit of US dollar cash flow.

Inspired by this, Jiao Lian is sharing with readers today how, as a long-term holder, you can use options to move smoothly through bull and bear markets—enjoying upside while also collecting rent.

1. Goldman Sachs’ calculation: what the heck is a covered call?

First, let’s see how Goldman Sachs plays it. This fund won’t buy Bitcoin directly; it will first buy spot Bitcoin ETPs (for example, products like BlackRock’s IBIT), and then sell call options on these ETPs. This is called a covered call—having the underlying asset on hand, ready to be delivered, while selling the right to sell the asset at a predetermined price at some future time.

The other party buys this right and pays some money in advance, which is called the premium—that is, the “rent.” Goldman Sachs wants this premium.

What’s the trade-off? The trade-off is that if Bitcoin’s price surges sharply, Goldman Sachs can only sell at the lower pre-agreed price, missing out on the celebration of a big rally. In other words, Goldman Sachs gives up part of the upside in exchange for a more certain cash flow.

It’s like you have a house. You predict the house price won’t jump much next month, so you promise that next month you can sell it to an agent at a slightly higher price—and you collect a deposit in advance. If the house price doesn’t rise much, you just pocket the deposit for free; if the house price skyrockets, you earn less, but you still sell at the agreed high price and keep the deposit.

That is the underlying logic of a covered call.

2. From covered calls to “bull and bear, both eaten”: the options playbook for long-term holders

Goldman Sachs’ strategy is only one side of the coin. Jiao Lian often says: when long-term Bitcoin holders have an early position with a thin cost basis, the focus is on adding and holding—“you nurture BTC.” After you cross the threshold of financial freedom, you need to actively manage it—getting living expenses out of BTC—turning into “BTC that nurtures you.”

Of course, if you use options well, they’re a money-printing machine; if you misuse them, they’re a meat grinder.

For a committed long-term holder, the premise is that you truly believe Bitcoin will rise in the long run. Then you can flexibly use two options strategies depending on market sentiment: sell puts in a bear market, and sell calls in a bull market.

Sell puts in a bear market: accumulate at low levels, collect rent while bottom-fishing

When the market is full of wailing, prices keep sliding, and the fear index is off the charts, we can consider selling put options (short put).

The operation is simple: with cash in hand, choose a low price you’re willing to buy at (for example, 20% below the current price), sell a put at the corresponding strike price, and collect the premium.

There are two possible outcomes: if the price doesn’t fall to that low level, the put becomes worthless paper and you keep the premium, continuing to wait. If the price really falls to that level, you buy Bitcoin at the agreed low price—the effective cost is even lower because the premium is deducted.

That’s “others are fearful, I’m greedy.” You don’t just collect rent—you also pick up bloodied chips in panic.

Sell calls in a bull market: distribute at high prices, collect rent while cashing out

When the market is euphoric and prices rocket higher, and everyone is shouting about stars and the sea, we can consider selling covered call options.

The operation is simple: with Bitcoin in hand, choose a high price you’re willing to sell at (for example, XX% above the current price), sell a call at the corresponding strike price, and collect the premium.

There are two possible outcomes: if the price doesn’t rise to that high level, the call becomes worthless paper and you keep the premium, continuing to hold. If the price really rises to that level, you sell Bitcoin at the agreed high price—the price you actually receive will be slightly lower than the market’s peak, but you lock in your profit and convert it back into cash.

That’s “others are greedy, I’m fearful.” You don’t just collect rent—you sell at a high price amid the frenzy.

3. The premise for “eating in both bull and bear”: conviction

Jiao Lian wants to emphasize that for these two strategies to work, they must be built on a foundational belief: that the underlying asset (i.e., BTC) will rise long-term.

If you don’t have that belief: in a bear market, selling puts may force you to catch a declining asset at a high price that could eventually go to zero. In a bull market, selling calls may make you sell your valuable chips cheaply before a big rally.

If you do have that belief: in a bear market, selling puts lets you buy happily at low prices; if it doesn’t fall, you’re happy collecting rent. In a bull market, selling calls lets you sell happily at high prices; if it doesn’t rise, you’re still happy collecting rent.

No matter whether it goes up or down, you’re the winner. That’s the calmness of a long-term holder.

4. Risks and costs: no free lunch

Of course, both strategies come with costs and risks.

Risk of selling puts: if the Bitcoin price falls far below your strike price, you buy at a higher price and you’ll incur a loss on paper. But as long as you believe it will rise again in the long run, this loss is temporary.

Cost of selling calls: if the Bitcoin price rises far above your strike price, you sell at a lower price and you miss out on the profit from the big surge. This might make you slap your thigh in regret. But as long as your selling is not speculative—say, to improve your life—there’s nothing worth regretting.

So, start small to test the waters. Once you’re familiar with your own needs and the capabilities of your tools, there’s no rush to decide whether to use them heavily.

5. Summary: from passive holding to active rent collection

This new fund from Goldman Sachs is essentially taking Covered Call—a traditional financial skill that’s been played for decades—and moving it onto Bitcoin. When traditional institutions enter the game, it also signals that Bitcoin is evolving from a purely speculative asset into an interest-bearing asset that can generate cash flow.

For ordinary holders and people who hoard, you don’t need to buy Goldman Sachs’ fund. If you do it yourself, it’s actually more flexible and costs less. Sell puts in a bear market, sell calls in a bull market—if you have the belief that it will rise long-term, you can move freely through bull-to-bear transitions: you capture the upside and you also collect rent.

Long-term holding isn’t about blindly clutching; it’s about using tools to make time work for you.

Reference materials:

[1] “New Goldman Sachs Bitcoin fund is built for advisers seeking yield, not traders chasing the next rally”, *Cryptoslate*, Apr 15, 2026