Cash-Secured Puts

How to Generate Income With Ethereum Cash-Secured Puts

Most Ethereum investors focus on buying ETH and waiting for the price to rise. Others stake their ETH to generate a modest yield.

Cash-secured puts offer a different approach.

Instead of placing limit orders and waiting for Ethereum to fall, investors can sell put options and collect option premium while potentially buying ETH at a lower price.

For long-term Ethereum investors, cash-secured puts can serve two purposes simultaneously:

At Terramatris, cash-secured puts are one of our preferred…

What Happens to Cash-Secured Puts When Ethereum Rallies?

In September 2023, Ethereum began showing signs of strength after several months of relatively subdued price action. As ETH recovered above the $1,600 level, investors who had been selling cash-secured put options experienced one of the most favorable market environments for the strategy.

This period provides a useful example of how cash-secured puts can perform when markets move gradually higher.

If you are new to the strategy, start with our guide: How to Generate Income With Ethereum Cash-Secured Puts.

Cash-secured puts generally…

Can 1DTE Cash-Secured Puts Generate Consistent Income?

In September 2023, Terramatris experimented with selling very short-dated cash-secured put options on Ethereum. While the portfolio gained 6.63% during the week, the more important takeaway was not the return itself but what the strategy revealed about short-duration options selling.

At the time, the fund was still in its early stages, and position sizes were small. This allowed us to test different approaches to premium collection while maintaining a strong focus on capital preservation and risk management.

If you are new to put selling, start with our guide: How to Generate…