As of September 4, 2026, our Ethereum strategy portfolio was valued at $3,674, up 0.5% week over week. Despite the continued recovery, the portfolio remains down -31.76% year to date and -68.64% below the all-time high reached in September 2025.
Based on our performance tracking, the strategy continues to underperform Ethereum itself, which is down approximately -15.50% year to date.
ETH spent most of the week trading around the $2,400-$2,500 area before reclaiming $2,500 late in the week. The broader crypto market also strengthened as bond yields eased and expectations for further Federal Reserve tightening softened. For our strategy, however, the more important development was that ETH remained comfortably above the strike prices of our current short-put positions.
Weekly Cash-Secured Puts
All of our short puts expired worthless last week, allowing us to retain the full premium without taking assignment. We then opened a new position with September 11, 2026 expiry:
- 1.4 ETH September 11, 2026 $2,400 cash-secured puts at a $21.90 premium
Total options premium collected this week reached $29.60, slightly below the levels seen in previous weeks. Nevertheless, we remain comfortable with the fund’s current development and positioning.
Our total notional exposure has increased to approximately $3,360.
Across the current rolling cycle, cumulative premium income has reached $225.15, representing approximately 6.7% of current notional exposure over 49 days.
Our goal is to continue managing the position until cumulative premium income reaches at least $400. At that point, we intend to reset the cycle and allocate 50% of the realized profit to TerraM treasury operations, including token buybacks and liquidity provision.
At the current pace of roughly $29 per week, the $400 target could be reached in approximately another 6 weeks. Assignment, volatility, rolling opportunities and option pricing could materially shorten or extend that timeline.
If the puts are assigned before the target is reached, we are prepared to take delivery of the ETH and begin selling covered calls against the position.
At entry, the new put position had a delta of approximately -0.23. Delta can be used as a rough indication of assignment risk, although it should not be treated as a direct probability forecast.
From this week’s options premium, we purchased an additional 0.01177 ETH, increasing our long-term ETH holdings to approximately 0.115 ETH. Our combined ETH exposure is therefore now approximately 1.51 ETH, of which 1.4 ETH is represented by short puts.
For the moment, we are leaving the long spot position uncapped. Covered calls will only be introduced if the 1.4 ETH short puts are assigned.
TerraM Token
There were no TerraM token buys or sells last week, with the token price remaining unchanged at $0.77. Treasury operations remain paused while we continue building realized profits from the current ETH options cycle.
Solana Covered Call Fund
The Solana strategy decreased by -3.01% week over week, with NAV per unit falling to $0.47.
SOL had a volatile but ultimately fairly flat week. After trading around $104-$105, it briefly slipped below $100 before recovering above $103 toward the end of the week. For the fund, however, the main issue remains the covered-call overlay rather than the week-to-week movement in SOL itself.
We completed several roll-forwards during the week, moving positions from the end-of-September expiry to the end-of-October expiry. These adjustments allow us to collect additional time premium and potentially improve the economics of challenged positions, although they also extend the period during which part of our upside remains capped.
With SOL now trading above $100, several of our covered calls have strike prices below the market price. We are actively assessing how best to adjust these positions while preserving as much future upside as possible.
This also helps explain why the fund can temporarily move differently from SOL itself. When SOL rises above our short-call strikes, part of the underlying gain is offset by losses on those calls. Rolling the positions can improve strike prices or generate additional premium, but the adjustment does not immediately remove that capped upside.
By the end of the week, our long spot position stood at 74.28 SOL, with an average purchase price of $167.07 and a break-even price of approximately $142.56.
Going forward, we have decided to pause selling covered calls on any new positions whenever the available strike prices fall below our break-even level. The objective is to avoid unnecessarily limiting the recovery potential of newly accumulated SOL.
With SOL trading near $104 at the time of writing, the overall position nevertheless remains well below break-even.
During the week, we collected a modest $12.83 in options premium.
Our Solana strategy remains down -36.27% year to date, compared with a decline of approximately -16.55% for SOL itself. Closing this performance gap remains one of the main priorities in managing the strategy.
1-DTE Ethereum Yield-Harvesting and Accumulation Bot
Our 1-DTE Ethereum options bot completed another week without an assignment.
The bot follows a strict delta threshold of below -0.06 and skips opportunities that fall outside those parameters.
So far, 63 of 63 expired positions have finished without assignment under the current rules, with an estimated annualized yield of 22.56%.
Last week, the bot earned $0.77 while trading 0.1 ETH short puts with a delta no lower than approximately -0.06.
We plan to keep the bot unchanged until it has completed at least 100 trades. Only then will we consider increasing position size or adjusting the rules. If a put is eventually assigned, we are comfortable taking delivery of the ETH, as accumulation remains part of the broader strategy.
Bottom Line
Overall, this was a relatively stable week for the fund. The Ethereum strategy continued its gradual recovery, all short puts expired worthless, and we added another week of premium income while increasing our long-term ETH holdings.
The Solana strategy remains more challenging. SOL is still trading well below our average purchase price, while several covered calls are now limiting part of the upside. Our main focus there is therefore shifting from maximizing short-term premium income toward improving the structure of those positions and preserving more recovery potential.
Across both strategies, the priority remains the same: continue generating option income, reduce break-even levels where possible, and steadily increase the amount of underlying crypto held by the fund.
Next Week’s Plan
- Continue managing the 1.4 ETH cash-secured put position and look for another roll or new position if the current puts expire worthless.
- Continue using part of the ETH options premium to accumulate additional ETH.
- Keep the long ETH spot position uncapped unless the short puts are assigned.
- Review challenged SOL covered calls and look for opportunities to roll them higher and/or further out where the option market allows.
- Avoid opening new SOL covered calls below our break-even level, prioritizing capital recovery over additional short-term premium.
- Keep the 1-DTE ETH bot unchanged and continue progressing toward the 100-trade milestone.
With both ETH and SOL still well below their previous-cycle highs, we remain focused on improving the fund position gradually rather than forcing additional yield at unfavorable levels.