Options & Futures
Selling Bitcoin Put Credit Spreads Against a Covered Call
A Bitcoin covered call is simple in principle: hold BTC, sell a call at a strike where selling BTC would be acceptable, collect premium and accept that upside above the strike may be given up.
The position needs more thought when the call remains open for weeks and Bitcoin trades above its strike. The short call is then in the money, the BTC holding still carries full downside exposure, and the decision is no longer only whether to wait for expiry. The call can be left alone, closed or rolled.
There is another choice in some conditions: leave the longer-dated covered call open…
Why Rolling SOL Options Can Be More Difficult Than BTC or ETH
TerraMatris research note, September 2026. This article describes our own positions and execution experience. It is not investment advice and does not treat option premium as a substitute for risk management.
On September 4, 2025, TerraMatris launched its dedicated Solana strategy: long SOL exposure with selective covered calls and cash-secured puts. A year is long enough to move past the first impression of a new market. We can now ask a more useful question than whether SOL options exist: after one year of using them, has the market matured enough to support systematic covered-call…
XRP-Backed ETH Options Strategy: 14.6% Return While Cutting Risk by 80%
On April 23, 2026, a smaller XRP-denominated account managed separately from the main Terramatris strategies initiated a structured crypto options income strategy on Bybit.
The account holder approved the strategy specifically to generate additional income from long-term XRP holdings without liquidating the underlying XRP position.
At the time, the account held 751 XRP valued at approximately $1,000, while ETH traded near $2,321.
Instead of selling XRP, the strategy used XRP as collateral for selling ETH put options.
The initial exposure size was approximately…
XRP Options on Deribit: Covered-Call Strategy and Risks
XRP options on Deribit can be used to structure a covered-call approach for an existing XRP position. This article explains the strategy concept, how the trade works in practice, and the main risks involved.
In XRP terms, a covered-call structure begins with holding XRP or maintaining equivalent XRP exposure, then selling a call option against that position. The premium received is not a guaranteed return: it is exchanged for accepting capped upside if the option is exercised or assigned. Strike selection, expiration, and the ability to close or roll the position all affect the…
Selling Covered Calls on Borrowed Bitcoin: Strategic Yield with Asymmetric Risk
On May 25, 2025, we executed a position that perfectly illustrates a niche but compelling setup in the crypto derivatives space. We:
Borrowed 0.01 BTC (worth $1,080 at the time),Posted 0.54 ETH as collateral (worth $1,350),And sold a cash-settled call option on 0.01 BTC with a strike price of $110,000,Collecting a premium of $17 with weekly expiry (May 30).Let’s break down the rationale, benefits, risks, and variations of this strategy — and why, despite its synthetic nature, it can be a valuable tool in Terramatris' option yield strategies.
The Core StrategyThe basic idea is…
How to Sell a Synthetic Covered Call on ETH
At TerraMatris Crypto Hedge Fund, we actively deploy a range of options strategies to generate income and manage directional exposure. Today, I want to share an elegant and capital-efficient technique we’re using: the synthetic covered call—a method that replicates the payoff profile of a traditional covered call, without the need to hold the underlying crypto asset.
What Is a Synthetic Covered Call?Traditionally, a covered call involves owning a crypto asset (like ETH) and selling a call option against it. This generates premium income while capping upside beyond the strike price.…