I’m excited to announce the launch of the RentYield Crypto Options Fund within the TerraMatris Crypto Hedge Fund, designed to reinvest rental income from my Riga properties into crypto options trading. This fund aims to grow the portfolio to match my annual rental income within one year, using the conservative strategies of selling cash-secured puts and covered calls. A key feature of this fund is the complete avoidance of leverage, keeping risk to a minimum.
A New Chapter in Real Estate: From Homeowner to Landlord
While I’ve been a homeowner for several years, I’ve only recently stepped into the role of a landlord. More precisely, I finalized my first rental agreement for my Riga property on September 10, 2024. The decision to rent out my property marks a significant milestone, and while the rental income could easily be used to cover day-to-day expenses, I’ve chosen a different path. Instead of using this newfound income to cover costs, I’ve decided to reinvest it into the RentYield Crypto Options Fund to generate additional income.
How the RentYield Crypto Options Fund Works
This fund operates under a simple yet effective model: turning passive rental income into a vehicle for active growth in the crypto markets. By selling crypto options—starting with cash-secured puts and eventually moving into covered calls as the portfolio grows—I aim to create an additional income stream without adding undue risk.
Here’s how it works:
- Cash-Secured Puts: To begin, I’ll sell cash-secured puts, where each position is fully backed by cash. This means if the options are exercised, I’ll have the cash ready to buy the underlying crypto assets at the strike price, ensuring that the fund remains risk-averse.
- Covered Calls: As the fund acquires crypto assets through the selling of puts, I’ll transition to selling covered calls. This strategy allows me to generate income from the assets already held in the portfolio, while still keeping ownership of the underlying assets.
Why Launch a Separate Fund?
I’ve chosen to launch this fund as a separate entity within TerraMatris to keep a clear distinction between my other investment activities and the reinvestment of rental income. By doing so, I can better track its performance and focus on scaling this specific strategy. The goal remains clear: grow the portfolio to the equivalent of my rental income within one year, effectively creating two income streams—one from the property and another from options trading in the crypto markets.
A Risk-Averse Strategy: No Leverage
One of the most important features of the RentYield Crypto Options Fund is its no-leverage policy. Every option sold, whether a cash-secured put or a covered call, is fully backed by either cash or the underlying asset. This conservative approach minimizes risk while still allowing for consistent premium generation. In essence, I’m looking to generate steady income while safeguarding my assets.
Long-Term Vision: From Rental Income to Financial Growth
By reinvesting the rental income into options trading, I aim to double the value I derive from my Riga properties. Instead of just passively collecting rent, the fund allows me to actively grow that income through smart, calculated options trades. In the long term, this could provide additional flexibility—whether it’s growing the portfolio further or eventually using the income to cover living expenses.
Launching this fund marks a new chapter in my investment journey, blending real estate with crypto options to create a sustainable, diversified growth strategy. Over the next year, I’ll share regular updates on how the fund performs, the strategies I use, and insights into both the real estate and crypto markets.
Stay tuned for more as I work towards my goal of making the RentYield Crypto Options Fund a success!