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Ep 147 / Why We're Abandoning Long/Short Trading for Ethereum Covered Calls
| Trading Journal | 20 seen
At the beginning of June, we reached a turning point.
Once again, we experienced a scenario that has hurt our portfolio several times over the years. We were holding profitable long positions while simultaneously opening additional short positions using borrowed funds. The idea was to hedge risk and generate returns from both sides of the market.
Instead, the market moved sharply against us.
As Ethereum fell toward $1,500, tail risk increased dramatically. Our long positions lost value, while our short positions also became problematic due to the structure and leverage involved. Rather than reducing risk, the strategy created complexity, stress, and capital inefficiency.
At that point, we concluded that continuing to fight this battle was no longer worthwhile.…
Ep 146 / Ethereum Below $1,700: Bottom Signal or Another Leg Down?
| Trading Journal | 15 seen
Welcome to another hectic week (#146) in digital assets.
Last week was yet another brutal one for crypto traders, including options sellers. With Ethereum dipping under $1,700 without any obvious fundamental catalyst (except bitcoin selloff), reinforcing a lesson we’ve learned many times before: crypto markets should not always be approached through a traditional valuation lens. Price action is often driven less by fundamentals and more by volatility, leverage, liquidity, and positioning.
What we witnessed last week appears to have been a significant leverage washout, which doesn’t come as a surprise. In last week’s update, we already highlighted the possibility of a forced deleveraging event, and that seems to be exactly what played out.
We are not excluding the…
Ep 145 / How We Reduced ETH Put Exposure by 14% During the Latest Selloff
| Trading Journal | 12 seen
Last week was quite hectic for ETH and Ethereum options sellers. With ETH sliding below $2,000, we simulated several scenarios to adjust this week’s positions and ultimately decided on a more defensive but flexible approach.
That said, welcome to Weekly Update #145 covering the latest developments and positioning adjustments inside the Terramatris ETH options portfolio.
Going into expiry, we were holding 1.7 covered calls with a $2,100 strike price and 2 short puts at the $2,250 strike. We didn’t wait until expiry on Friday morning, but instead managed all positions already on Thursday afternoon.
First things first, we immediately sold new weekly covered calls at the $2,050 strike. This strike sits slightly above our average purchase price, allowing us to collect more…
XRP-Backed ETH Options Strategy: 14.6% Return While Cutting Risk by 80%
| Ethereum options | 40 seen
On April 23, 2026, a smaller XRP-denominated account managed separately from the main Terramatris strategies initiated a structured crypto options income strategy on Bybit.
The account holder approved the strategy specifically to generate additional income from long-term XRP holdings without liquidating the underlying XRP position.
At the time, the account held 751 XRP valued at approximately $1,000, while ETH traded near $2,321.
Instead of selling XRP, the strategy used XRP as collateral for selling ETH put options.
The initial exposure size was approximately equivalent to 1 ETH, meaning the structure carried leverage exceeding 2x relative to collateral value.
This was intentionally aggressive.
But from the beginning, the plan was never simply to “…
Ep 144 / ETH Recovery or Further Pain? Managing Covered Calls, Puts and Assignments
| Trading Journal | 19 seen
Despite one of the weakest premium-selling weeks (#144) in months, the fund made one of its most important strategic transitions yet: moving toward a margin-free structure while continuing to accumulate long-term ETH and SOL exposure during a deeply unfavorable market environment.
Ethereum short puts moved into the money as ETH briefly fell below $2,130, forcing a series of active position management decisions involving rolls, assignments, perpetual futures, and covered calls. At the same time, the fund secured additional liquidity through an internal 0% interest loan, allowing us to fully eliminate brokerage margin debt without reducing core ETH holdings.
Meanwhile, the Solana strategy remained heavily underwater, but instead of capping upside through aggressive covered…
Ep 143 / TerraM Token Reaches $2.22 as Fund Focuses on Risk Reduction
| Trading Journal | 5 seen
On May 15th, 2026, the TerraM token traded at $2.22, up +4.75% week over week. On-chain activity was minimal, with two buys and one sell.
The treasury operations increased current liquidity on the Raydium AMM pool (TerraM:USDC) to 4.61% of total token circulation. While this week’s increase was modest, we remain optimistic about reaching 5% liquidity by the end of the month.
We expect the TerraM token to reach the $2.20–$2.30 range by month-end, supported by ongoing weekly buybacks from the fund and continued liquidity injections. With $2.20 already achieved, a move toward $2.30 appears increasingly likely, although we do not exclude the possibility of short-term price corrections or temporary downside volatility.
YTD, the TerraM token is down 27.68% from its $3.07…
Fine-Tuning ETH Options Bot: Adding RSI-Based Assignment Logic
| Algo Trading | 59 seen
After two weeks of live testing and iteration, we made another meaningful upgrade to our algo trading bot.
For the past 14 days, the Terramatris ETH options engine has been running continuously in production, managing short-duration ETH put strategies on Bybit.
So far, results have been encouraging: the bot has maintained a 100% win rate during the initial live testing period while automatically managing expiries, scanning new opportunities, rolling winning positions forward, and tracking performance metrics in real time.
But despite the strong early performance, one important question remained: What should the bot do when a put option expires in the money?
The Problem With Blind AssignmentInitially, the logic was simple:
If the option expired worthless…Ep 142 / Ethereum Options Strategy Generates $129 Premium as TerraM Expands Liquidity
| Trading Journal | 3 seen
On May 8th, 2026, the TerraM token traded at $2.12, up +4.95% week over week. On-chain activity was minimal, with two buys and one sell.
The treasury operations increased current liquidity on the Raydium AMM pool (TerraM:USDC) to 4.56% of total token circulation. While this week’s increase was modest, we remain optimistic about reaching 5% liquidity by the end of the month.
We expect the TerraM token to reach the $2.20–$2.30 range by month-end, supported by ongoing weekly buybacks from the fund and continued liquidity injections.
An interesting pattern is forming on the technical chart — something resembling a cup formation. With our current treasury and liquidity operations, we do not exclude the possibility of reclaiming the all-time high of $3.30, set back in…
Backtesting Ethereum: How Often Does ETH Drop 5% in a Day?
| Research | 53 seen
While working with the TerraM trading bot, I conducted a backtest to quantify the frequency of significant daily drawdowns over the past 365 days (May 4, 2025 – May 3, 2026). Specifically, I analyzed how often the daily price change exceeded -5% or more. The results are notable.
The dataset is based on historical price data sourced from CoinMarketCap, with calculations performed in Google Sheets. Daily performance was measured as the percentage change between the open and close prices.
Out of 365 trading days—reflecting the continuous nature of crypto markets—194 days closed negative, while 171 days were positive. This distribution suggests a moderately bearish environment over the observed period, consistent with broader market conditions.
Distribution of Daily…Ep 141 / TerraM Token Defends $2—Is the Trading Bot the Next Catalyst?
| Trading Journal | 8 seen
On May 1st, 2026, the TerraM token traded at $2.02, down -6.48% week over week. On-chain activity was minimal, with two buys and one sell.
The sell-off actually improved liquidity in the pool, and through active treasury operations we managed to keep the TerraM token above $2, which is a strong outcome.
If selling pressure remains limited in the coming weeks, we expect the TerraM token to reach the $2.20–$2.30 range by month-end, supported by ongoing weekly buybacks from the fund and continued liquidity injections.
During the week total TerraM liquidity on the Raydium pool increased to 4.55% of total supply.
Our broader objective remains to expand liquidity coverage to 10%, with a near-term milestone of reaching 5%. We are quite optimistic reaching 5% level by…