As of November 18, 2025 our options portfolio carried 2.9 ETH short puts across multiple expiries. If all positions were assigned at their respective strike prices, the total capital required would be $9,040. Most of these contracts have recently moved in-the-money, largely due to the broad market selloff that pushed ETH lower and increased short-term margin pressure.
Given these conditions, we performed a structured review of our risk-limit scenarios. The goal was straightforward:
avoid any potential margin call while maintaining long-term bullish exposure to Ethereum.
We remain comfortable holding ETH long-term, but short-term volatility is the primary threat we aim to neutralize.
During the review, we identified a tactical opportunity that allowed us to reduce both margin requirements and strike-price exposure without sacrificing premium income. The key steps:
Buying Back Risky Short Puts
We repurchased 0.3 ETH worth of short puts with a strike of $3,200, paying $71 in total. These contracts contributed disproportionately to near-term assignment and margin risk due to their higher strike.
Selling Two New Short Puts (Further Out)
Immediately after closing the 0.3 ETH, we opened two new short put contracts with a later expiry date.
Premium collected: $74
This generated slightly more cash than we spent buying back the earlier contracts — a small net credit.
But the real benefit came from the structural improvements. Our total exposure dropped from:
- 2.9 ETH → 2.8 ETH
A small but meaningful reduction in potential assignment and margin requirements.
The new puts were sold at a strike of $2,800, a $400 reduction from the previous $3,200 level.
Lower strike = lower assignment risk + lower capital needed per ETH.
Margin Requirement Reduced
If all positions were assigned today:
- Before: $9,040 required
- After: $8,640 required
Total reduction: $400 in obligations
This difference may look minor, but in a tightly leveraged environment, every improvement strengthens liquidity and resilience.
The new options expire further out in March, giving the portfolio additional time to recover from current volatility — with significantly lower short-term pressure.
This adjustment simultaneously:
- Reduced total ETH exposure
- Lowered the strike price
- Decreased potential assignment cost
- Preserved premium income
- Extended time before next major expiry
- Reduced short-term margin risk
A classic example of small adjustments producing disproportionately strong risk benefits. With more time before our next expiry window, we can continue refining the portfolio step-by-step. The broad objective remains unchanged:
Gradually eliminate margin debt, return to a cash-growth trajectory, and rebuild diversified exposure once volatility stabilizes.