The Ethereum Strategy is a closed-end internal strategy run by Terramatris LLC, designed to generate consistent income through disciplined, rules-based Ethereum options trading.
The strategy follows a disciplined, rules-based framework centered on selling cash-secured puts and covered calls. Premiums collected from these option positions are reinvested into spot ETH holdings, steadily compounding long-term exposure while maintaining a structured income stream.
Established in August 2023, the strategy has evolved from an early proof-of-concept - initially targeting incremental daily gains - into a systematic, data-driven approach that demonstrates the power of disciplined execution and compounding over time.
Performance
| Year | Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | YTD |
| 2026 | -39.13% | -5.76% | 16.68% | 13.01% | 16.67% | -37.97% | 13.71% | -37.75% | |||||
| 2025 | 12.25% | 22.55% | -34.18% | -2.38 | 23.45% | 29.55% | 24.23% | 6.12% | -1.63% | -8.28% | -47.23% | 6.85% | -5.19% |
| 2024 | 52.70% | 109.61% | 56.67% | 4.11% | 29.28% | 10.87% | 19.24% | 4.26% | 6.93% | 4.85% | 33.78% | 3.63 | 1345.98% |
| 2023 | - | - | - | - | - | - | - | - | 134.06% | 66.39% | 88.12% | 57.28% | - |
Over time, the fund has transitioned from an initial multi-asset trading approach into a dedicated Ethereum-focused strategy, allowing for clearer positioning, tighter execution, and more consistent reporting.
Strategy
Our core strategy focuses on accumulating spot ETH through the sale of weekly cash-secured puts. If a position is challenged, we may roll the put to a later expiration or accept assignment and purchase the underlying ETH.
Once assigned, we switch to writing covered calls against the position. This creates a continuous cycle of premium collection and ETH accumulation commonly known as the wheel strategy.
Alongside our weekly options trading, we have also developed a 1-day-to-expiry ETH options trading bot. As strong supporters of short-duration options strategies, we designed the bot to target low-delta ETH puts with only one day remaining until expiration. The primary objective is to collect small, frequent premiums while maintaining a predefined process for handling challenged strikes.
Weekly Options Premium (USDT)
The strategy aims to maintain a stable growth trajectory, supported by recurring options income and guided by the objective of delivering steady weekly performance on invested capital.
After each successfully completed options cycle, we may allocate up to 50% of the realized profit to supporting our native TerraM token through treasury operations, including token buybacks and liquidity provision.
Ethereum Strategic Reserve
Since February 6, 2026, we have transitioned to a spot-only ETH strategy, steadily increasing our ETH holdings over time. Our ETH holdings may fluctuate as part of the wheel strategy: they generally increase through premium-funded purchases and put assignments but may decrease when covered-call positions are closed.
Our long-term objective remains to steadily increase the portfolio’s ETH holdings. We aim to avoid leverage whenever possible, although limited and temporary margin use may occasionally be required to support assignment, settlement, or other operational needs.