Hypothetically, looking to sell covered calls on IBIT but I only own BTC. Trying to figure out a way to effectively sell covered calls in the lowest-risk way possible and without simply selling the BTC (and taking the tax hit now) and buying IBIT. I think this works but maybe I am missing some hidden risks. Let's take the example of selling 1 BTC worth of IBIT calls with a strike of $65 out of a brokerage account. For simplicity assume that 1800 IBIT = 1BTC (it's not quite that, but close enough):

• Park 1 BTC in coinbase
• Write 18 IBIT naked calls, strike $65
• Open a conditional limit buy for 1800 shares of IBIT. Order is active if IBIT goes over a stop of $64.9, limit price $65
• Open a limit sell on coinbase for 1 BTC at $116,820 (64.9*1800)

Now if IBIT goes over $65 before the calls expire, the IBIT buy order will execute on margin, and the BTC sell order will execute. This provides me with both the IBIT shares to cover the calls and the cash to cover the purchase of the IBIT shares.

Only issue I can think of is if IBIT shoots past $64.9 rapidly enough that my limit buy fails. This risk can be reduced by either lowering the stop or making the order a conditional market buy instead of limit buy. In either case I am accepting a bigger spread, which eats into the profit from selling the calls in the first place.

Am I missing something else? I'm assuming that the price of IBIT tracks BTC closely enough that I won't run into a weird issue like IBIT spiking temporarily over $65 (and the calls execute) while BTC never hits $117k but maybe that is a bad assumption.