Hello, my name is Reinis Fischer, CEO and founder of TerraMatris Crypto Hedge Fund. Welcome to our weekly recap for October 17, 2024. This week, I'm coming to you from the beautiful city of Prague, recording from the lobby of Belvedere Hotel Prague. Let's dive into this week's highlights.
Who We Are
For those unfamiliar with TerraMatris, we are a quantitative DeFi crypto hedge fund specializing in advanced options trading strategies. Our focus is primarily on selling put options while aiming to maximize growth and minimize risk in the cryptocurrency market.
Investments in our fund are available through our TerraM token, which can be traded via the Raydium decentralized liquidity pool powered by the Solana blockchain. Although our operations are based in Georgia, the fund is decentralized, with global access to potential investors. As always, it's important to perform your due diligence before investing in any asset, as there are inherent risks involved.
Our Strategy
At TerraMatris, our core strategy revolves around 1-day-to-expiry put options on Bitcoin and Ethereum. In addition to selling puts, we utilize covered calls on already established positions. Our current holdings include Ethereum and Solana, with premiums reinvested back into crypto assets.
Our basket of cryptocurrencies includes Bitcoin, Ethereum, Stellar Lumens, USDC (stablecoin), Solana, Jupiter, and PXG (Digital Gold). We apply dollar-cost averaging (DCA) to these investments to maintain a weighted average price for our assets, which helps manage risk.
Risk Management
Risk management is at the heart of our strategy. We primarily trade options with a high probability of expiring worthless, targeting trades with Delta values under -0.10. This week, we've been particularly cautious, trading options under Delta -0.05.
In case a position becomes troubled, we look to roll the trade forward, buying back the losing trade and opening a new one with an expiration further out and a lower strike price while still trying to squeeze out a credit. Additionally, we hedge some of our trades with futures contracts, setting up trigger-based market trades to short futures in the event of a significant market drop.
Weekly Goals and Performance
Every week, we set specific trading goals. This week, our goal was to trade 1.4 Ethereum with Delta values under -0.05, while investing at least $15 daily into cryptocurrencies. We've focused our investments this week on Bitcoin, Jupiter, and Stellar Lumens.
As of October 17, 2024, we're excited to announce that our fund has reached an all-time high of $3,862.85, representing a 5.35% week-over-week growth, or approximately $196 in gains. We are edging closer to the $4,000 mark, and we're eager to see how things unfold in the coming weeks.
Current Open Positions
We currently have 0.6 short Ethereum contracts with a strike price of $2,500, set to expire on November 29, 2024. In addition, we hold 0.4 long call contracts with various strikes and expiration dates, the closest being October 18, 2024. With Ethereum trading around $2,600, these positions are in the money, and we plan to roll them out and up, possibly to late November expirations.
Market Trends and Technical Analysis
Ethereum is currently trading between its 50- and 100-day moving averages. Although we see a positive pullback above $2,500, we are cautious and not ruling out a possible return to that level. As options sellers, we are always mindful of downside risks and are prepared for potential pullbacks to $2,260 or even $2,250 levels. However, we remain hopeful for the possibility of Ethereum pushing toward $3,000 by the end of the year.
TerraM Token – How to Get Involved
The TerraM token represents a direct ownership stake in the TerraMatris fund. Each token gives holders a proportional share of the fund's growth and performance. Powered by the Solana blockchain, TerraM tokens are secure and transparent, with all transactions verifiable via the Solana Explorer.
We also have a buyback program, ensuring liquidity and increasing value for each TerraM token holder. This program periodically buys back tokens, driving up their price. For instance, if you bought TerraM tokens for $100, they could be worth $120 or more over time, thanks to the buyback mechanism.
It's easy to swap USDC for TerraM tokens on the Raydium exchange, and if you have any questions, feel free to reach out to me directly on LinkedIn or leave a comment on this video. We can arrange a meeting, either in person or via a Google Meet call.
Swap on Raydium (Solana supported wallet required)
Networking in Prague
I've had the pleasure of attending several productive meetings here in Prague with educated traders, fund managers, and investors. We are exploring potential synergies, and I'll keep you updated on any developments from this exciting trip.
Thank you for tuning in to this week's recap. I’ll see you next week from Tbilisi!