After Bybit enabled options trading for Dogecoin (DOGE), we decided to include DOGE in the TerraM Multi-Asset Crypto Options Fund. Our favorite approach across assets remains consistent - selling put options to generate income and using that income to accumulate the underlying asset over time.
If assigned, we take delivery of the asset and sell covered calls. More often than not, we roll forward the position for a credit instead of letting the call get exercised, effectively compounding income while maintaining exposure.
On October 29, we opened our first DOGE position by selling:
- 1,000 DOGE put options
- Strike: $0.185
- Credit received: $0.019 per DOGE
- Expiry: October 31, 2025
By October 31, the strike was in the money, so we decided to take a proactive stance — rolling the position forward one week to the next expiry while lowering the strike price to $0.18 and earning an additional premium of $0.0058 per DOGE.
All collected premium is reinvested into spot DOGE, which is now part of our TerraM Multi-Asset fund.
- Spot DOGE holdings: 40 DOGE
- Short puts: 1,000 contracts (strike $0.18)
- Average buy price: $0.1895
- Break-even price: $0.1742
What happens next?
If, on expiry — November 7, 2025, DOGE remains above $0.18, our short put options will expire worthless, allowing us to keep the full premium and continue selling new weekly puts to generate consistent income.
If, however, DOGE trades below $0.18, we’ll evaluate two possible paths:
- Roll Out and Forward: Extend the position to a later expiry while keeping or slightly adjusting the strike price — ideally for an additional net credit, compounding the income stream.
- Take Assignment: Accept delivery, most likely in the form of a perpetual futures position, and transition to a covered call selling strategy to generate further yield.
This flexible approach allows us to adapt dynamically to market conditions while maintaining our primary goal — steady option income and strategic accumulation of DOGE within the TerraM Multi-Asset Crypto Options Fund.
After our first week with DOGE coin option we are looking at 3% income in 9 days
This marks the start of our “Poor Man’s Crypto Hedge Fund” series, where we’ll use DOGE as a fun and educational vehicle to demonstrate disciplined, option-based accumulation and yield generation in crypto markets.
As always, all DOGE income and positions are part of the TerraM Multi-Asset Crypto Options Fund, following the same risk-managed, income-compounding approach used with BTC, ETH, and SOL.