Risk, Portfolio & Performance
Position Sizing for Crypto Options: Assignment, Concentration and Leverage Risk
Position sizing for crypto options starts with the maximum portfolio loss or assignment exposure that can be accepted, then works backward to contract size. It should not start with the premium available or with the maximum margin a venue permits.
Illustration: position size should reflect assignment, collateral and concentration risk.Options can make a small premium appear attractive relative to the cash received, while the underlying obligation is much larger. Terramatris treats contract size, collateral, concentration and liquidity as linked controls. A trade is not well sized…
How to Benchmark a Crypto Options-Income Strategy: NAV, Premium, Drawdown and Spot
Benchmark an options-income strategy against a matched spot position and report NAV, premium, realized P/L, unrealized P/L, drawdown, cash/collateral and open exposure separately. A single premium or annualized-yield number cannot establish whether the strategy improved the portfolio outcome.
Illustration: evaluate an overlay with matched benchmarks and separate performance measures.Terramatris uses weekly records as historical documentation, not as evidence that any future premium target will be met. A useful benchmark makes the strategy falsifiable: it can show where an overlay…
Why Options-Income Strategies Can Underperform Spot During Strong Crypto Rallies
An options-income strategy can lag spot when its short calls cap upside, its hedge costs rise, or its position is structured for a range-bound market while the underlying makes a large directional move. Premium received is compensation for an obligation; it does not preserve every dollar of upside.
Illustration: a covered-call overlay can lag spot when the underlying rallies beyond the strike.This is not a defect that can be solved by annualizing premiums. It is the core trade-off. A portfolio selling calls on BTC or ETH has deliberately exchanged some convex upside for immediate…
Crypto Options Collateral and Margin: Why “Covered” Does Not Mean Low Risk
Collateral is the asset set aside to support an options obligation; margin is the venue’s risk requirement for keeping that position open. A strategy can receive premium and still be unsafe if collateral, settlement currency, liquidity or position size are misunderstood.
Illustration: collateral and margin are risk controls, not evidence that a position is low risk.The word “covered” is useful but incomplete. A short BTC call may be covered by BTC, cash, a synthetic position or exchange margin. Those structures can behave differently when prices move, volatility rises or a venue…
Options Premium Is Not Profit: How to Read Options Performance
Premium is a cash-flow item; realized results and total portfolio outcome require separate reporting.
An option seller may receive premium when a position opens. That cash receipt is real. It is not, by itself, the final economic result of the position—or of a broader strategy.
Terramatris publishes educational research and strategy notes on digital-asset options. It does not accept deposits, manage third-party capital, or trade on behalf of investors. (About Terramatris) This article explains a reporting framework for reading…
Why We Decided to Invest in Liberland Dollar (LLD)
At Terramatris, we are always exploring opportunities that align with our values of innovation, independence, and forward-thinking. Sometimes, these discoveries come through structured research, and sometimes they appear unexpectedly. Our recent investment into Liberland Dollar (LLD) belongs to the second category — a pleasant surprise during our ongoing research into projects that combine crypto innovation with strong community values.
Over the past year, we’ve attended few crypto-related meetups and brunches in Tbilisi, Georgia, a city that has become a lively hub for blockchain…