As of July 31, 2026, our Ethereum strategy portfolio was valued at $3,357, up 1.7% week over week. Despite the weekly recovery, the portfolio remains down -37.66% year to date and -71.35% below the all-time high reached in September 2025.
Based on our performance tracking, the strategy is slightly underperforming Ethereum itself, which is down approximately -35.77% year to date.
Weekly Cash-Secured Puts
Last week, we closed our covered-call position at a profit and switched back to selling cash-secured puts. After the previous puts expired worthless, we opened a new position with an August 7, 2026 expiry:
- 1.4 ETH August 7, 2026 $1,850 cash-secured puts at a $24.8 premium
The total premium collected this week reached $33.92. The position’s break-even price is approximately $1,794.50, with a potential return of 2.94% over 14 days if the puts expire worthless.
The plan is to continue rolling the puts until cumulative premium income reaches at least $400. At that point, we intend to reset the position and allocate 50% of the realized profit to TerraM token treasury operations, including token buybacks and liquidity provision.
If the puts are assigned before that target is reached, we will take delivery of the ETH and begin selling covered calls against the position.
The total premium collected so far has reached $76. At the current pace, we could reach the $400 target within several weeks. Assuming an average of approximately $35 per week, it would take around 9–10 weeks before the next TerraM token treasury operations, including buybacks and liquidity additions.
However, nothing is guaranteed. The timeline could be significantly shorter or longer depending on market conditions, volatility, option pricing, and whether the position needs to be rolled or assigned.
At the time the new position was opened, the option delta was approximately -0.30, indicating a relatively high probability that the puts could finish in the money and be assigned at expiration.
We have become extremely conservative about using leverage to increase returns. If the puts are assigned next week, we would be required to purchase 1.4 ETH at the $1,850 strike price, for a total cost of $2,590.
Based on the current cash balance, this would leave us approximately $322 short of the amount required. In that scenario, we would temporarily use brokerage margin, accept delivery of the ETH, and switch back to selling covered calls against the position. The income generated from those covered calls would then be used to gradually repay the margin balance.
From the options premium received this week, we also purchased an additional 0.017 ETH, increasing our long-term ETH holdings to approximately 0.048 ETH. Over time, this accumulating spot position is expected to make a growing contribution to the overall portfolio.
TerraM Token
There was very little activity in the TerraM token this week. A few small trades moved the price slightly up and down, but by the end of the week, TerraM remained flat at $0.78.
With trading bots now beginning to recognize and trade the TerraM token, we expect algorithmic activity to gradually improve liquidity and support the token’s long-term market development.
Solana Covered Call Fund
The Solana strategy decreased by -2.61% week over week. NAV per unit decreased slightly to $0.32.
By the end of the week, our long spot position stood at 85.16 SOL, with an average purchase price of $151.81 and a break-even price of approximately $132.45. With Solana trading near $74 at the time of writing, the position remains significantly underwater.
During the week, we collected a modest options premium of $18.36 by selling four covered calls expiring on August 28, 2026. Due to SOL’s recent underperformance, we are writing calls against only a small portion of the position rather than the entire holding, preserving greater upside exposure in case of a strong market rebound.
Our Solana strategy is down -56.55% year to date, compared with a decline of approximately -40.33% for SOL itself. The underperformance reflects not only the decline in SOL but also losses associated with the TerraM allocation.
1-DTE Ethereum Yield-Harvesting and Accumulation Bot
It has now been two weeks since we restarted our 1-DTE Ethereum trading bot. Over the past week, we refined several features and improved the overall user experience.
We have not yet decided whether to make the bot publicly available, but we have opened a waiting list. If this is something you may be interested in testing in the foreseeable future, leave your email address and we will get back to you with further details.
So far, the bot has completed 31 trades with a 100% win rate. Last week, it generated $0.55 while trading 0.1 ETH short puts with a delta no lower than −0.06. The strategy’s current annualized return stands at 22.90%.
We plan to keep the bot running until it has completed at least 100 trades before deciding whether to scale the strategy. In the meantime, if a short put is assigned, we would be comfortable taking delivery of the ETH, as accumulation is part of the broader strategy.
Bottom Line and Outlook for Next Week
The Ethereum strategy remains the core focus. Although the portfolio gained 1.7% this week, it is still down 37.66% year to date and continues to slightly underperform ETH itself. Next week, the priority should be careful management of the 1.4 ETH $1,850 cash-secured puts. We should avoid adding further exposure while the position is not fully covered by cash. If assigned, we can accept delivery of the ETH and switch back to covered calls, but any temporary margin balance should be repaid before increasing allocations elsewhere.
For the TerraM token, activity remains limited and the price ended the week unchanged at $0.78. The next meaningful treasury support is expected only after the current ETH options cycle generates at least $400 in cumulative premium. Until then, we should avoid forcing buybacks and continue focusing on building the underlying strategy profitably. Increased algorithmic trading may improve liquidity, but it should not be treated as a substitute for genuine demand and stronger treasury support.
The Solana strategy remains the weakest part of the portfolio. With the position substantially below its average purchase price, selling calls against the entire holding would risk limiting recovery potential. The current approach of writing covered calls against only a small portion of the 85.16 SOL position remains reasonable. Next week, the emphasis should be on collecting modest premium without sacrificing too much upside if SOL rebounds.
The 1-DTE Ethereum bot should continue operating at its current 0.1 ETH size. Its 31 completed trades and 100% win rate are encouraging, but the sample is still too small and has not yet included an assignment or a severe adverse move. We should keep the bot unchanged until it reaches at least 100 trades, while closely monitoring execution quality, skipped trades, realized returns and how the system behaves when a short put is challenged.
Overall, next week should remain focused on disciplined risk management rather than expansion: manage the Ethereum puts, preserve upside in the Solana position, allow TerraM treasury reserves to build gradually and continue collecting more evidence before scaling the 1-DTE bot.