Options Income
How to Sell a Synthetic Covered Call on ETH
At TerraMatris Crypto Hedge Fund, we actively deploy a range of options strategies to generate income and manage directional exposure. Today, I want to share an elegant and capital-efficient technique we’re using: the synthetic covered call—a method that replicates the payoff profile of a traditional covered call, without the need to hold the underlying crypto asset.
What Is a Synthetic Covered Call?Traditionally, a covered call involves owning a crypto asset (like ETH) and selling a call option against it. This generates premium income while capping upside beyond the strike price.…
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 8: Portfolio Passes $90 With Another Options Week
On October 12, 2023, the portfolio moved from $80.43 to $92.86. The reported change was 15.45%, with $12.43 in options income.
Another positive week does not make the risk disappear. Premium can look easy right before conditions change, so I am keeping the same attention on the next decision.
I am happy with the move above $90, but the important part is that the portfolio kept growing without changing the basic approach. The account is still small, so the percentage is less interesting to me than the $12.43 added and the fact that the next decision still has to stand on its…
Ep 7: TerraMatris Portfolio Reaches $80.43
On October 5, 2023, the portfolio reached $80.43, a reported gain of 25.26%. Options income came to $16.22.
The result reflects both continued options income and better movement in the underlying positions. That is encouraging, but it is not a reason to forget how thin the market still feels. When liquidity is light, a position can become harder to adjust exactly when a trade stops behaving.
I am pleased to see the account move past $80, especially after starting with $5.38 in Ep 1. The job has not changed: keep selling options with discipline, manage the positions actively,…
Ep 6: Another Week of ETH Options Income, Portfolio at $64.21
On September 28, 2023, the portfolio reached $64.21. That is a 22.33% increase from last week's $52.49, with $11.72 in options premium collected.
The weekly result came from options premium. I am trying to build the account through repeated, controlled decisions rather than one oversized bet.
It is tempting to look at a 22% week and call it proof that the process works. At this account size, that would be the wrong lesson. The useful part is that the balance grew and I stayed with the plan. The next week can look very different.
TerraMTerraM held around $0.86. It is…
Ep 5: Options Premium Pushes TerraMatris to $52.49
On September 21, 2023, TerraMatris closed the week at $52.49, up $12.12 from $40.37. The reported weekly change was 30.02%, and the increase came from options premium collected during the period.
That is a good result, but the account is still small enough that twelve dollars can make a big percentage difference. I am keeping the focus on the actual cash added to the portfolio and on whether the next setup is worth taking.
The options approach is doing what I wanted it to do in these early weeks: give the portfolio a way to collect premium while I build capital gradually. It…
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…
Ep 1: Starting the TerraMatris Trading Journal With $5.38
I started the TerraMatris trading journal on August 23, 2023. The first week was small, which was exactly the point: start with real capital, make the decisions visible, and see whether an options approach can build a base over time.
By August 24, 2023, the portfolio showed $5.38 in income. It is not a number to celebrate too hard, but it is a real first entry. I was more interested in keeping the first step controlled than in forcing a larger result.
Where TerraM stoodThe TerraM token was quoted around $0.86. Liquidity was very limited, so I treated that as a reference…