As of August 28, 2026, our Ethereum strategy portfolio was valued at $3,656, up 5.31% week over week. Despite the strong weekly recovery, the portfolio remains down -32.25% year to date and -68.8% below the all-time high reached in September 2025.
Based on our performance tracking, the strategy continues to underperform Ethereum itself, which is down approximately -15.97% year to date.
Last week, ETH broke above $2,500 before retreating slightly. That still leaves it at roughly half the level it traded at about a year ago, when ETH was close to $5,000.
As our spot holdings remain relatively small, we captured only a fraction of last week’s rally. We are comfortable with that. Unlike during previous rallies, our current focus is on spot exposure while avoiding unnecessary leverage. This means we may participate less in sharp upside moves, but we are also better protected if the market experiences a sudden correction.
Weekly Cash-Secured Puts
All of our short puts expired worthless last week, allowing us to retain the full premium without taking assignment. We then opened a new position with September 4, 2026 expiry:
- 1.4 ETH September 4, 2026 $2,375 cash-secured puts at a $26 premium
Total options premium collected this week reached $35.70. Because of the sharp increase in ETH’s price, we raised our put strike to $2,375, bringing total notional exposure to approximately $3,325. The higher strike allows us to continue generating meaningful premium, but it also increases our assignment exposure and the amount of capital that would be committed if ETH reverses sharply.
Across the current rolling cycle, cumulative premium income has reached $195.54, giving us a cycle-adjusted break-even of approximately $2,231.90. The cumulative cycle return is approximately 5.88% over 42 days.
Our goal is to continue managing the position until cumulative premium income reaches at least $400. At that point, we intend to reset the cycle and allocate 50% of the realized profit to TerraM treasury operations, including token buybacks and liquidity provision.
At the current pace of roughly $35 per week, the $400 target could be reached in another 5-6 weeks. However, assignment, volatility, rolling opportunities and option pricing could materially shorten or extend that timeline.
If the puts are assigned before the target is reached, we are prepared to take delivery of the ETH and begin selling covered calls against the position.
At entry, the new put position had a delta of approximately -0.23. Delta can be used as a rough proxy for the probability of finishing in the money, although it should not be treated as a direct probability forecast.
From this week’s options premium, we purchased an additional 0.01435 ETH, increasing our long-term ETH holdings to approximately 0.103 ETH. Our combined ETH exposure is therefore now approximately 1.5 ETH, of which 1.4 ETH is represented by short puts.
For the moment, we are leaving the long spot position uncapped. Covered calls will only be introduced if the 1.4 ETH short puts are assigned.
TerraM Token
There were no TerraM token buys or sells last week, with the token price remaining unchanged at $0.77. Treasury operations remain paused while we continue building realized profits from the current ETH options cycle.
Solana Covered Call Fund
The Solana strategy increased by +19.87% week over week, with NAV per unit rising to $0.49.
For the second week in a row, the SOL strategy delivered a weekly gain of close to 20%. With SOL appreciating from approximately $89 to $108, the rally provided a significant boost to the value of the portfolio.
By the end of the week, our long spot position stood at 74.16 SOL, with an average purchase price of $167.18 and a break-even price of approximately $142.81. This means accumulated options income has effectively reduced our break-even by about $24.37 per SOL, or roughly 14.6% below the original average purchase price.
With SOL trading near $108 at the time of writing, the overall position nevertheless remains below break-even.
This week also highlighted one of the limitations of covered calls. We closed 16 SOL call options with an $84 strike because there were no suitable contracts available to roll up and forward, which is normally our preferred way of managing adverse covered-call moves.
Instead, we sold 16 put options with an $83 strike and expiry at the end of September. This removes the upside cap from our existing SOL holdings and allows us to participate more fully if the rally continues, while the new puts generate additional premium below the current market price.
The trade-off is that our downside and assignment exposure has increased if SOL falls materially below the $83 strike.
During the week, we collected a modest $24.40 in options premium.
Our Solana strategy remains down -34.29% year to date, compared with a decline of approximately -14.17% for SOL itself.
1-DTE Ethereum Yield-Harvesting and Accumulation Bot
Our 1-DTE Ethereum options bot completed another week without an assignment.
The bot follows a strict delta threshold of below -0.06 and skips opportunities that fall outside those parameters.
So far, 56 of 56 expired positions have finished without assignment under the current rules, with an estimated annualized yield of 22.96%.
Last week, the bot earned $0.76 while trading 0.1 ETH short puts with a delta no lower than approximately -0.06.
We plan to keep the bot unchanged until it has completed at least 100 trades. Only then will we consider increasing position size or adjusting the rules. If a put is eventually assigned, we are comfortable taking delivery of the ETH, as accumulation remains part of the broader strategy.
Bottom Line and Next Week’s Plan
The most meaningful near-term milestone for the Ethereum strategy is now $4,000 in portfolio value. At $3,656, we are getting closer, but we do not want to make larger scaling decisions before first reclaiming that level.
Our three immediate objectives are:
- $4,000 in Ethereum strategy portfolio value
- $400 in cumulative premium from the current ETH options cycle
- $50 per week in sustainable options income
The priority is to reach those milestones without materially increasing risk. We would rather grow weekly premium through gradual expansion of productive ETH exposure than by moving aggressively closer to the money simply to force higher income.
Hopefully, by the time the portfolio reaches $4,000, the current options cycle will also be approaching or surpassing its $400 premium target. That would allow us to realize the cycle profit and resume meaningful contributions to TerraM treasury operations.
Next week, we will continue managing the 1.4 ETH short puts, keep the 0.103 ETH spot position uncapped, reinvest part of the premium into additional ETH, and remain prepared to accept assignment if the market turns sharply lower.
For the SOL strategy, the focus will remain on managing the newly opened $83 puts while avoiding the temptation to chase the recent rally. The 1-DTE ETH bot will continue unchanged as it progresses toward the 100-trade milestone.
For now, the focus remains simple: protect capital, build productive ETH exposure, finish the current premium cycle, and reclaim the $4,000 portfolio level before considering the next stage of scaling.