As of June 26, 2026, our Ethereum strategy portfolio was valued at $2,948, down 45.25% year-to-date. The recent crypto selloff has been massive - painful, but not exactly unusual for this market.
Compared with Ethereum itself, the portfolio has performed almost identically, with ETH down approximately 48.54% over the same period. In other words, the portfolio has largely tracked its core underlying asset, while still generating option premium along the way.
If there is one lesson to take from this market, it is this: stay away from leverage.
Because we are running spot-only, or spot-backed covered options strategies, we are not being forced out of positions. We are more or less surfing the wave.
During the week, ETH briefly traded above $1,750. At that moment, we took a proactive stance and rolled our existing $1,800 covered call to a $1,825 strike with next week’s expiry, while collecting additional premium.
Soon after, ETH dropped sharply toward $1,550 and even below. It is now trading under our spot buy price of $1,565, but still above our adjusted break-even price of approximately $1,515.
That is exactly why avoiding leverage matters. The position is uncomfortable, but it is still manageable.
Ethereum Covered Call Position
This week, we managed 1.3 ETH through covered calls.
Our average purchase price is $1,565 per ETH, but thanks to option premiums collected over recent months, our effective cost basis has already been reduced to approximately $1,515 per ETH.
Rolling the Covered Call Forward and Up
During the week, Ethereum traded in a relatively wide range between roughly $1,750 and $1,530. As ETH approached the $1,750 level, I decided to manage the covered call proactively rather than wait until expiration.
Specifically, I bought back our existing $1,800 covered call and rolled the position forward by selling next week’s $1,825 covered call.
The adjustment generated an additional $18.40 in premium income, while also increasing our potential sale price by $25 per ETH.
This is the kind of roll I like: it generated a credit, raised the strike, and kept the strategy active without adding leverage or requiring additional capital.
Current Position
We now hold:
1.3 ETH Jul 03, 2026 $1,825 covered call
If Ethereum continues higher and gets called away at $1,825, we would realize a strong profit on the underlying position, in addition to all premiums collected along the way.
If ETH remains below the new strike, we keep the premium, continue holding the asset, and can evaluate another covered call sale next week.
Potential Outcome if Assigned at $1,825
If our position is called away next week at the $1,825 strike price, the trade would generate a total profit of approximately $421, representing a return of 20.69% in 28 days.
Under our current policy, 50% of realized profit would be allocated toward TerraM token support and buybacks. Given the recent weakness in the TerraM token price, such a contribution could provide a meaningful boost to the ecosystem while also rewarding long-term holders.
If Ethereum does not reach the $1,825 strike price, no profit distribution will occur. Instead, we will continue selling weekly covered calls against the position, collecting additional premium and gradually lowering our effective break-even price.
What Happens After Assignment?
If the position is eventually called away, the plan would be to redeploy capital using either cash-secured puts or credit spreads.
This follows the basic logic of the Wheel Strategy: sell puts to potentially re-enter Ethereum at attractive prices, then sell covered calls once the asset is back in the portfolio.
One of our medium-term goals is to grow the portfolio back to its previous all-time high of $11,719, reached in September 2025.
Getting there will not happen overnight. At the current pace of collecting roughly $18 per week in option premium, it would take a very long time to close that gap through premiums alone.
But combined with favorable market conditions and disciplined position management, this approach gives us the best chance of steadily rebuilding the portfolio while keeping risk under control.
For now, we are comfortable with slow and steady progress.