Perpetual Futures
Managing Risk: Rolling Forward and Hedging With Trigger-Based Shorts
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In the past week, one of our ETH option positions came under pressure. We were short 1.7 ETH put contracts with a 4100 strike expiring on August 22. With ETH price action weakening, the trade started to look challenged.
At Terramatris, our primary focus is risk management. Collecting option premium is attractive, but holding onto a position that feels unsafe can quickly turn into a liability. We therefore took a hard look at our choices:
Roll forward to a later expiry to keep premium income flowing.Hedge with futures to neutralize delta risk.Combination strategies, blending both…