Welcome to TerraMatris's weekly update! My name is Reinis Fischer, CEO of TerraMatris Crypto Hedge Fund, and today is October 31st, 2024. I'm here in Tbilisi, Georgia, my favorite spot for recording these weekly recaps. Let's dive right in and catch up on this week’s achievements and insights into our fund’s performance.
About TerraMatris
For those who are new, let me introduce TerraMatris. We are a quantitative, DeFi-driven crypto hedge fund with a core focus on advanced options trading strategies, specializing in selling put options on key cryptocurrencies. Our goal is to maximize growth while minimizing risk, creating a high-performance fund accessible to investors through our native token, TerraM. You can participate in our success by investing in TerraM, which is available for swapping on the decentralized exchange Raydium, powered by the Solana blockchain.
Swap on Raydium (Solana supported wallet required)
Disclaimer: Please remember, all investments in stocks, bonds, or cryptocurrencies carry risk. You could lose some or all of your invested capital, so always conduct thorough due diligence.
Trading Strategy Overview
Here at TerraMatris, we predominantly trade 1-day-to-expiry (1DTE) put options on Bitcoin and Ethereum. We also sell covered calls on established positions, with a diversified portfolio that includes Bitcoin, Ethereum, Stellar Lumens, USDC, Solana, Jupiter Token, and PXG. Our strategy revolves around dollar-cost averaging and careful premium reinvestment, which allows us to build a smooth price average for each asset.
It’s been 63 weeks since TerraMatris was founded, and this week we focused on increasing our exposure to Bitcoin, Jupiter, and PAXG. Our risk management approach prioritizes high-probability trades that aim to expire worthless. Typically, we seek trades with a Delta of -0.10 or less, giving us about a 90% chance that these options will expire profitably. If a position becomes challenged, we employ a strategy called rolling forward for a credit and use perpetual futures contracts as a hedge.
Weekly Performance
Today, I’m thrilled to share that our fund has hit an all-time high of $4,079! Breaking the $4K milestone was a long journey, but we've finally achieved it. This week alone, our portfolio grew by 2.19%, adding $87.36 in dollar terms. Our next target is $5,000, which we’re aiming to reach by the end of the year.
Currently, we’re holding 0.6 short ETH contracts with a strike price of $2,500, expiring on November 29, alongside 0.4 long covered calls on Ethereum expiring later in November. We love covered calls because they’re low-risk, long-term positions that allow us to generate steady income.
Market Trends and Technical Analysis
Right now, Ethereum is trading between its 50 and 200-day moving averages, with strong recent momentum. Bitcoin recently broke past $70,000, which helped boost Ethereum as well. However, we’re cautious, watching for any sharp sell-offs. Ethereum needs to break above $2,800 to continue its rally, but as option sellers, we’re prepared for any dip below $2,500 or even down to $2,400 next week.
Participate in TerraMatris via TerraM Token
To benefit from TerraMatris’s performance, consider holding our TerraM token. Each TerraM token provides direct ownership in the fund, allowing you to benefit from our growth and success. Powered by Solana’s blockchain, TerraM offers transparent, secure, decentralized ownership, easily accessible by swapping USDC for TerraM on the Raydium Liquidity Pool with a Phantom wallet.
Swap on Raydium (Solana supported wallet required)
Business Development
This week, I’ve been actively meeting with market makers and liquidity providers here in Georgia, exploring partnerships to accelerate TerraMatris’s growth. While our fund’s current size may not attract large institutional investors, we’re consistently demonstrating strong performance, and I'm confident we’ll soon draw more interest.
Thanks for tuning in to this week’s recap. It’s been an exciting week, with remarkable progress and growth. Please leave a comment if you’d like to learn more about our strategies or the TerraM token, and don’t forget to check out our previous videos for more insights.