As of August 14, 2026, our Ethereum strategy portfolio was valued at $3,388, up 0.35% week over week. Despite the weekly recovery, the portfolio remains down -37.07% year to date and -71.08% below the all-time high reached in September 2025.
Based on our performance tracking, the strategy is slightly underperforming Ethereum itself, which is down approximately -36.46% year to date.
For the past couple of weeks, ETH has been trading sideways in the $1,800–$1,900 range. From a classical technical-analysis perspective, we cannot rule out that the market is in a consolidation phase ahead of its next significant move. That breakout could be relatively binary—either sharply higher or lower.
Unlike traditional equities, digital assets are difficult to value using conventional cash-flow models. This makes directional forecasting particularly uncertain, especially during periods of low volatility and prolonged consolidation.
Weekly Cash-Secured Puts
As our weekly cash-secured puts expired worthless, allowing us to retain the full premium, we opened a new position with an August 21, 2026 expiry:
- 1.4 ETH August 14, 2026 $1,825 cash-secured puts at a $17.9 premium
The total premium collected this week reached $24.27. The position’s break-even price is approximately $1,731.40, with a potential return of 5.01% over 28 days if the puts expire worthless. We also lowered our $1,850 strike by $25, reducing our notional exposure to $2,555. This slightly improves our margin position and reduces the amount of debt we would incur if assigned.
The plan is to continue rolling the puts until cumulative premium income reaches at least $400. At that point, we intend to reset the position and allocate 50% of the realized profit to TerraM token treasury operations, including token buybacks and liquidity provision.
If the puts are assigned before that target is reached, we will take delivery of the ETH and begin selling covered calls against the position.
The total premium collected for this cycle has reached $127.93. At the current pace, we could reach the $400 target within several weeks. Assuming an average of approximately $28 per week, it would take around 10–11 weeks before the next TerraM token treasury operations, including buybacks and liquidity additions.
However, nothing is guaranteed. The timeline could be significantly shorter or longer depending on market conditions, volatility, option pricing, and whether the position needs to be rolled or assigned.
At the time the new position was opened, the option delta was approximately -0.27, indicating a relatively high probability that the puts could finish in the money and be assigned at expiration.
If the puts are assigned next week, we would be required to purchase 1.4 ETH at the $1,825 strike price, for a total cost of $2,555.
Based on the current cash balance, this would leave us approximately $250 short of the amount required. In that scenario, we would temporarily use brokerage margin, accept delivery of the ETH, and switch back to selling covered calls against the position. The income generated from those covered calls would then be used to gradually repay the margin balance.
From the options premium received this week, we also purchased an additional 0.0129 ETH, increasing our long-term ETH holdings to approximately 0.076 ETH. Over time, this accumulating spot position is expected to make a growing contribution to the overall portfolio.
TerraM Token
There was one TerraM token sell order, which pushed the token price down by $0.01 to $0.77.
Solana Covered Call Fund
The Solana strategy increased by +6.68% week over week. NAV per unit increased to $0.33
By the end of the week, our long spot position stood at 85.16 SOL, with an average purchase price of $151.81 and a break-even price of approximately $132.26. With Solana trading near $76 at the time of writing, the position remains significantly underwater.
During the week, we collected a modest options premium of $4.87 by selling 10 covered calls expiring on September 25, 2026. Due to SOL’s recent underperformance, we are writing calls against only a small portion of the position rather than the entire holding, preserving greater upside exposure in case of a strong market rebound.
Our Solana strategy is down -55.22% year to date, compared with a decline of approximately -39.06% for SOL itself. The underperformance reflects not only the decline in SOL but also losses associated with the TerraM allocation.
1-DTE Ethereum Yield-Harvesting and Accumulation Bot
It was an interesting week for our trading bot. On two days last week, the bot did not identify any trades that met its criteria—which we view positively: no trade is better than a bad trade.
The bot follows a strict delta threshold of below -0.06 and simply skips opportunities that fall outside these parameters. At one point, we expected our first assignment, but the position ultimately expired safely. In retrospect, the bot’s entry was correct.
So far, the strategy maintains a 100% success rate across 43 expired trades (43/43), with an annualized yield of 22.50%.
Last week, it earned $0.44 while trading 0.1 ETH short puts with a delta no lower than −0.06.
We plan to keep the bot running until it has completed at least 100 trades before deciding whether to scale the strategy or loosen the rules. In the meantime, if a short put is assigned, we would be comfortable taking delivery of the ETH, as accumulation is part of the broader strategy.
Bottom Line and Outlook for Next Week
The portfolio showed modest improvement this week, but the broader picture remains challenging. Our Ethereum strategy gained 0.35%, while the Solana strategy rebounded 6.68%, although both remain deeply negative year to date.
The main focus next week will be the 1.4 ETH $1,825 short put position. With the position carrying relatively high assignment risk, we are prepared for either outcome. If ETH remains above the strike, we will retain the premium and continue the current cycle toward the $400 cumulative premium target. If assigned, we will accept delivery of the ETH, temporarily use a small amount of margin if required, and transition back to selling covered calls.
At the same time, we continue converting part of our weekly options income into spot ETH. Our long-term ETH position has now grown to approximately 0.076 ETH, gradually increasing the portfolio's direct participation in any future Ethereum recovery. This accumulation remains slow by design, but each week of successful premium harvesting adds permanent underlying exposure.
ETH's continued consolidation around the $1,800–$1,900 range makes the coming weeks particularly important. A decisive move outside this range could materially change both assignment risk and option premiums. Rather than trying to predict the direction of the breakout, our approach remains focused on generating income while maintaining a structure that can adapt to either outcome.
The TerraM token remains broadly stable despite a small sell order this week, while the Solana portfolio continues to require patience. With SOL still well below our average entry price, we are deliberately limiting covered-call exposure to preserve upside should the market experience a stronger recovery.
Finally, the 1-DTE ETH trading bot continues to perform according to its rules, with 43 of 43 completed trades expiring successfully and an annualized yield currently estimated at 22.61%. We are not drawing conclusions from the early success yet. The priority remains reaching at least 100 completed trades before considering any meaningful changes to position sizing or entry criteria.
For next week, the emphasis remains unchanged: protect capital, collect premium when risk/reward is acceptable, continue accumulating ETH, and avoid forcing trades simply to generate activity.