As of November 30, 2023, the Terramatris fund reached a value of $249.75, continuing the strong growth recorded during the early months of the strategy.
During the week, the fund generated $25.31 in options income, contributing to an overall weekly increase of 11.28%.
Weekly Performance
- Fund value: $249.75
- Options income: $25.31
- Weekly growth: 11.28%
- Reporting date: November 30, 2023
The latest result marked another positive week for the fund, with options premium remaining the primary driver of portfolio growth.
At this stage, the strategy was still operating with relatively limited capital. This meant that even modest amounts of options income could produce substantial percentage gains. However, percentage returns during the fund’s early development should not automatically be treated as representative of the returns achievable with a larger portfolio.
Compounding Options Income
The Terramatris strategy was built around repeatedly selling options, collecting premium and reinvesting the proceeds into the portfolio.
The $25.31 generated during the week represented approximately 10.13% of the fund’s closing value. Combined with changes in the value of the underlying assets, this helped the portfolio produce an 11.28% weekly gain.
This illustrates the potential power of compounding during the early stages of a portfolio. Each successful options cycle increases the capital available for future trades, allowing the strategy to gradually expand its position sizes and income-generating capacity.
Managing Risk as the Fund Grows
Although the weekly performance was strong, options income is never risk-free. Selling options exposes the portfolio to assignment risk, sharp price movements and losses that can exceed the premium initially collected.
As the fund grows, the objective is not simply to maximize weekly income. Position sizing, available collateral and the ability to manage assigned positions become increasingly important.
The long-term sustainability of the strategy depends on maintaining sufficient reserves and avoiding excessive exposure during periods of elevated market volatility.
Continuing the Terramatris Experiment
Episode 15 represented another milestone in the development of the Terramatris fund. By November 30, 2023, the portfolio had grown to $249.75, supported by $25.31 in weekly options income.
The result demonstrated how a relatively small portfolio could grow through disciplined premium collection and reinvestment. At the same time, the unusually high percentage gains reflected the fund’s small starting size and should be interpreted cautiously.
Terramatris will continue documenting the strategy transparently, including both profitable periods and the inevitable challenges that come with actively managing crypto and options positions.
This article is provided for informational and educational purposes only. Options and cryptocurrency trading involve substantial risk and may not be suitable for every investor.