Last week was quite hectic for ETH and Ethereum options sellers. With ETH sliding below $2,000, we simulated several scenarios to adjust this week’s positions and ultimately decided on a more defensive but flexible approach.
That said, welcome to Weekly Update #145 covering the latest developments and positioning adjustments inside the Terramatris ETH options portfolio.
Going into expiry, we were holding 1.7 covered calls with a $2,100 strike price and 2 short puts at the $2,250 strike. We didn’t wait until expiry on Friday morning, but instead managed all positions already on Thursday afternoon.
First things first, we immediately sold new weekly covered calls at the $2,050 strike. This strike sits slightly above our average purchase price, allowing us to collect more aggressive premiums while still leaving enough room for a potential rebound. In such a scenario, it would become easier to roll these positions both outward and upward if needed.
Second, we "accepted assignment" on 0.1 ETH in the form of long perpetual futures and sold covered call options against this position for the June 26 expiry.
As for the remaining 1.9 ETH short puts at the $2,250 strike, we rolled those positions forward — this time both upward and for a credit. At first glance, this may appear counterproductive, since we increased the strike price. However, the adjustment significantly reduced overall exposure.
The original 1.9 ETH position at $2,250 represented roughly $4,275 in capital at risk. By rolling to 1.6 ETH at the higher $2,300 strike, total capital at risk if assigned dropped to approximately $3,680. From a risk-management perspective, this reduced capital at risk by about $595, or nearly 14%.
Without a meaningful recovery in ETH price action, the end of June will certainly not be easy. Still, from a position-sizing and portfolio-risk perspective, we believe these adjustments were smart decisions — at least based on today’s market conditions.
From the technical perspective, ETH continues to trade in a clearly bearish structure, remaining below both the 50-day and 200-day moving averages. The chart shows that after the sharp February selloff, ETH attempted several recovery rallies, but each rebound failed to reclaim higher macro resistance levels.
Currently, ETH is trading around the psychologically important $2,000 zone, while the 50-day moving average near $2,250 acts as the first major resistance level. Above that, the 200-day moving average around $2,500 continues to define the broader macro trend. As long as ETH remains below these levels, the market structure favors cautious positioning rather than aggressive bullish exposure.
One notable observation is the RSI, which has once again approached oversold territory below 30. Historically, such levels often lead to short-term relief rallies or stabilization phases. However, oversold conditions alone are not enough to confirm a reversal, especially during broader risk-off market environments.
Volume also remains relatively muted after the initial capitulation event earlier this year. This suggests that while panic selling has slowed, strong conviction buyers have not yet fully returned to the market.
We are not excluding the possibility of another flash selloff - potentially accompanied by increased volume and aggressive short positioning - pushing ETH down toward the $1,800–1,750 range before any meaningful recovery takes place.
Ethereum Strategy
On a weekly basis, the Ethereum strategy decreased by -10.02%.
The drop is primarily attributed to the short $2,250 put options, which we partially rolled forward. Tail risk remains real, and it will likely take several weeks to fully recover from this position.
In an ideal scenario, ETH would trade above $2,300 by the end of June, allowing us to fully offset the current losses. Otherwise, we will likely continue rolling positions forward and harvesting option premiums while managing overall exposure and capital at risk
The danger of tail risk lies in the fact that the fund itself is backed primarily by ETH, with no meaningful cash reserves. This creates a double-edged sword: if ETH continues declining in value, not only does the underlying collateral weaken, but the options exposure simultaneously becomes more difficult to manage.
In such an environment, declining asset value reduces portfolio strength precisely when additional flexibility and liquidity are needed most.
From the all-time high in September 2025, the fund is down -59.99%. While YTD performance currently stands at -13.96%, the fund is outperforming ETH itself, which is down -33.46% over the same period.
During the week, the ETH Strategy generated $74.97 in options premium income. By the end of the week, the strategy held 1.74 ETH with an average acquisition price of $1,989. while the break even price is much more better: $1,088
Current options positions:
- 1.7 ETH JUN 5, 2026 2,050 Covered Call
- 0.1 ETH JUN 26, 2026 2500 Covered Call (backed by long perpetual futures)
- 0.1 ETH JUN 26, 2026 2300 Covered Call (backed by long perpetual futures)
- 0.4 ETH JUN 26, 2026 2,100 Cash-Secured Put
- 1.6 ETH JUN 26, 2026 2,300 Cash-Secured Put
- 0.1 ETH JUL 31, 2026 2,100 Cash-Secured Put
Our ETH options portfolio currently carries approximately $8,695 in total gross notional exposure. Short covered calls represent about $3,965 in exposure, while short cash-secured puts account for roughly $4,730.
The structure remains modestly bullish, as downside put exposure still exceeds upside call exposure. The largest concentration remains the Jun 26 $2,300 cash-secured put position, which represents the primary downside obligation if ETH trades materially below strike into expiry.
Solana Strategy
For the second week in row our Solana strategy decreased by another -5.26%. NAV per unit decreased to $0.51, while SOL was trading at approximately $81.80 per token.
By the end of the week, we increased our long spot position to 69.07 SOL, with a buy price at $165.03 and break-even price of $142.58. With Solana trading at $82 at the time of writing, the position is significantly underwater.
During the week, we collected $29.75 in option premium by selling monthly covered calls expiring on June 26.
As our current positions remain significantly below both purchase and break-even levels, we continued increasing our SOL exposure through dollar-cost averaging. However, we deliberately avoided selling covered calls against newly accumulated SOL in order to preserve full upside potential during a possible market recovery. Instead, these holdings are being utilized for staking activities. This week, in total, 7 SOL were staked via bbSOL, generating an estimated annual yield of approximately 5%.
Solana Strategy YTD performance is -31%, slightly outperforming SOL itself, which is down -34.28% over the same period.
TerraM token
On May 29, 2026, the TerraM token traded at $2.22, up 0% change week over week. There were no on-chain activity.
This week 50% of this week’s options income was allocated toward strengthening liquidity in the Raydium AMM pool (TerraM:USDC), increasing pool liquidity to 5.1% of the total TerraM token circulation.
At this stage, we have decided to temporarily pause token buybacks until liquidity reaches at least 6% of circulating supply. As a result, the full 50% allocation will continue to be directed toward liquidity provision rather than repurchases.
We expect to restart the buyback program at the end of June, provided the 6% liquidity target is reached.
Whats next?
The coming week will be largely focused on managing the 1.7 ETH Jun 5 $2,050 covered call position. With ETH currently trading near the strike, our next steps will depend heavily on market direction.
If ETH rallies toward or above $2,050, we will evaluate rolling the covered calls both upward and outward to preserve upside exposure while continuing to collect option premium. If ETH remains below the strike, allowing the options to expire worthless would enable us to establish a new covered call position at more favorable terms.
On the downside, our primary focus remains the 1.6 ETH Jun 26 $2,300 cash-secured put position. Should ETH continue weakening toward the $1,800-$1,900 range, we may need to make additional defensive adjustments, including rolling positions further into the future, reducing contract size, or restructuring exposure to limit capital at risk.
We will also continue monitoring overall portfolio leverage and collateral strength. Because the fund remains heavily backed by ETH itself, maintaining flexibility is critical in a volatile market environment. Premium generation remains the core objective, but risk management will take priority until ETH reclaims key resistance levels near the 50-day moving average.
For the Solana strategy, we expect to continue gradual accumulation and staking while avoiding excessive covered-call selling on newly acquired tokens. For TerraM, liquidity growth remains the primary objective, with buybacks expected to resume once the 6% liquidity target is achieved.
While market conditions remain challenging, the portfolio is positioned to benefit from either stabilization above $2,000 or a gradual recovery toward the $2,300-$2,500 range during the remainder of June.