Options Strategies
Bitcoin Covered Calls vs Holding Bitcoin: The Upside You Give Up for Premium
A Bitcoin covered call exchanges some future BTC upside for a premium received today. It can be a deliberate overlay when an investor is genuinely willing to sell Bitcoin at the strike, but it is not equivalent to holding Bitcoin and it is not a substitute for risk control.
Illustration: a Bitcoin overlay trades some upside above the strike for option premium.Terramatris treats an options overlay as a portfolio decision rather than a yield product. The relevant comparison is not premium alone; it is the resulting net asset value, the BTC exposure retained, the assignment outcome and…
Ethereum Wheel Strategy: Cash-Secured Puts and Covered Calls
The ETH wheel lifecycle: each stage creates a new risk and position-management decision.
Educational research only. Not investment, legal, tax, or trading advice. Options and digital assets involve substantial risk, including loss of capital. A premium received is not a guaranteed profit.
An Ethereum wheel strategy combines two familiar options positions: a cash-secured put and, after assignment, a covered call. In Terramatris's published Ethereum framework, cash-secured puts may lead to spot ETH accumulation; covered calls may…
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.…