As of August 21, 2026, our Ethereum strategy portfolio was valued at $3,471, up 2.45% week over week. Despite the weekly recovery, the portfolio remains down -35.53% year to date and -70.37% below the all-time high reached in September 2025.
Based on our performance tracking, the strategy is underperforming Ethereum itself, which is down approximately -20.56% year to date.
Last week, ETH recovered above $2,300, although the move appears to have been driven more by mechanical factors than a fundamental shift in Ethereum’s outlook. A significant part of the rally was likely fueled by a short squeeze, with forced liquidations accelerating the move higher, while the initial momentum was largely related to the broader Bitcoin-led crypto rally.
Unfortunately, we were unable to participate meaningfully in this upside. Our spot ETH exposure remains relatively small, while most of our capital is currently focused on selling ETH puts and generating premium income. As a result, we benefited only marginally from ETH’s sharp appreciation.
The positive side is that the rally worked strongly in favor of our options positions. All of our short puts expired worthless, allowing us to keep the full premium collected without taking assignment. This highlights the trade-off in our current strategy: we sacrifice some participation in sudden upside moves in exchange for more consistent premium generation and a lower entry price should ETH eventually trade below our put strikes.
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 28, 2026 expiry:
- 1.4 ETH August 28, 2026 $2,225 cash-secured puts at a $23,5 premium
The total premium collected this week reached $31.91. The position’s break-even price is approximately $2,107.90, with a potential return of 5.13% over 35 days if the puts expire worthless. Because of the sharp increase in ETH’s price, we had to raise our put strike to $2,225, bringing our total notional exposure to approximately $3,115. While the higher strike allows us to continue generating meaningful premium, it also significantly increases our potential margin exposure if ETH reverses and we are forced to take assignment next week.
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 $159.84. At the current pace, we could reach the $400 target within several weeks. Assuming an average of approximately $31 per week, it would take around 7-8 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 -0.22, indicating a relatively high probability that the puts could finish in the money and be assigned at expiration.
From the options premium received this week, we also purchased an additional 0.01355 ETH, increasing our long-term ETH holdings to approximately 0.089 ETH. Over time, this accumulating spot position is expected to make a growing contribution to the overall portfolio.
TerraM Token
There were no TerraM token buys or sells last week, with the token price remaining unchanged at $0.77.
Solana Covered Call Fund
The Solana strategy increased by +22.42% week over week. NAV per unit increased to $0.41
SOL was no exception last week, appreciating sharply from around $75 to $89. This strong rally provided a significant boost to the value of our SOL strategy portfolio.
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 $132.23. With Solana trading near $89 at the time of writing, the position remains significantly underwater.
During the week, we collected a modest options premium of $2.14 by rolling up and forward 7 covered calls expiring on September 25, 2026.
Our Solana strategy is down -45.18% year to date, compared with a decline of approximately -28.01% for SOL itself.
1-DTE Ethereum Yield-Harvesting and Accumulation Bot
Our 1-DTE Ethereum options bot keeps crushing it, finishing yet another week undefeated.
The bot follows a strict delta threshold of below -0.06 and simply skips opportunities that fall outside these parameters.
So far, the strategy maintains a 100% success rate across 49 expired trades (49/49), with an annualized yield of 23.41%.
Last week, it earned $0.89 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
The week ended on a stronger note, with the Ethereum strategy portfolio rising 2.45% to $3,471, helped by higher crypto prices and another profitable round of short puts. However, the strategy continues to lag ETH itself year to date, largely because our relatively small spot exposure limits participation during sharp upside moves.
That trade-off was especially visible last week. ETH’s move above $2,300 benefited our options positions, with all short puts expiring worthless, but it did little for portfolio upside compared with simply holding more ETH. We are gradually addressing this by using weekly premium income to build the spot position, which has now increased to approximately 0.089 ETH.
The new $2,225 strike materially raises our assignment exposure. While the position still offers an attractive break-even near $2,108, a sharp reversal could leave us taking delivery of 1.4 ETH at a substantially higher capital commitment than in previous weeks. This is therefore becoming less of a pure income trade and more of a deliberate willingness to accumulate ETH if the market pulls back.
Elsewhere, the Solana strategy benefited strongly from SOL’s recovery, although it remains significantly underwater versus both its cost basis and SOL itself year to date. The 1-DTE ETH bot remains the standout performer operationally, reaching 49 consecutive expired trades without an assignment and maintaining an annualized yield above 23%, though the sample remains too small to assume that this win rate can persist indefinitely.
Outlook for Next Week
For the week ahead, the main focus will be whether ETH can hold the recent breakout above the $2,200-$2,300 area or whether last week’s squeeze begins to unwind. After such a rapid move higher, we would not be surprised to see increased volatility and some consolidation or profit-taking.
For our strategy, the key level is the $2,225 put strike expiring August 28. If ETH remains comfortably above this level, we should be able to retain another week of premium and continue progressing toward the $400 cycle target. If ETH drops below the strike, however, we are prepared to accept assignment and transition the position into covered calls rather than aggressively defending the trade.
We will also continue using premium income to accumulate small amounts of spot ETH. This remains important because the past week demonstrated the weakness of being too lightly exposed to the underlying during sudden rallies.
On the automated side, the 1-DTE bot will continue operating under the same conservative −0.06 delta threshold. With 49 trades completed, we are now approaching the halfway point toward our 100-trade evaluation milestone, after which we can make a more meaningful assessment of its risk-adjusted performance and whether scaling is justified.