Bitcoin
Selling Covered Calls on Borrowed Bitcoin: Strategic Yield with Asymmetric Risk
On May 25, 2025, we executed a position that perfectly illustrates a niche but compelling setup in the crypto derivatives space. We:
Borrowed 0.01 BTC (worth $1,080 at the time),Posted 0.54 ETH as collateral (worth $1,350),And sold a cash-settled call option on 0.01 BTC with a strike price of $110,000,Collecting a premium of $17 with weekly expiry (May 30).Let’s break down the rationale, benefits, risks, and variations of this strategy — and why, despite its synthetic nature, it can be a valuable tool in Terramatris' option yield strategies.
The Core StrategyThe basic idea is…
Ep 10: Crypto Options Portfolio Reaches $124.02
On October 26, 2023, the portfolio finished the week at $124.02, up $21.34 from $102.68. The reported weekly change was 20.78%, and the journal records the $21.34 as options gains.
It was another fast week for the portfolio. I am not trying to explain the whole result with one headline. Fast moves can help one position and pressure another, which is why the work stays the same: keep the risk in view and do not get careless after a good result.
Getting above $120 only a week after crossing $100 feels good. The account is still small, and that is exactly why I need to stay…
Ep 9: TerraMatris Passes $100 With Options Income
On October 19, 2023, the portfolio crossed $100 for the first time, reaching $102.68. It was up $9.82 from $92.86, a reported change of 10.58%. The $9.82 was recorded as options income.
Passing $100 is a small milestone, but I am not treating it as a finish line. The portfolio started with $5.38, so the change is visible. It does not change the risk in the options positions or make a double-digit week normal.
I was focused on the work in front of me: manage the options positions, take premium where the trade makes sense, and do not let a good number turn into a reason to…
Ep 4: Ethereum Options Premium Builds the Portfolio to $40.37
On September 14, 2023, the portfolio reached $40.37, up $4.48 from $35.89. That works out to 12.48%. The account is still tiny, so I am keeping the percentage in perspective. A few dollars move the number a lot at this stage.
The early work is still centered on Ethereum options premium. I am not trying to predict every move in ETH. I am looking for premium that makes sense against the risk, then keeping the proceeds in the portfolio instead of treating a good week as money already won.
The goal is to keep making reasonable decisions, not to manufacture a smooth return line.…
Ep 3: A Quiet Week for Ethereum Options, Portfolio at $35.89
On September 7, 2023, the TerraMatris portfolio moved from $33.66 to $35.89, a gain of $2.23 or 6.63%.
Ethereum was the main focus again. It was a quieter week for the portfolio, but selling options still means staying alert to the risk behind the premium. I was actively managing those positions within the risk limits I had set.
The smaller gain is fine. I would rather keep the process steady than turn a small account into a race for the biggest weekly percentage. Last week's move was much larger in percentage terms because the portfolio had started from almost nothing.
…Ep 2: Ethereum Options Income Takes the Portfolio to $33.66
On August 31, 2023, the second week moved the portfolio from $5.38 to $33.66. That is an increase of $28.28, or 525.7%. The percentage looks wild because the starting balance was $5.38. The dollar amount is the more useful number.
Most of the week came from short-dated Ethereum options premium. I was actively managing the positions behind that premium, not treating it as automatic income. It was compensation for taking risk, and I wanted to keep the decisions measured.
In Ep 1, I started with a $5.38 result and a very small base. This week showed what a few decent premium…