On August 31, 2023, just two weeks after launching the Terramatris fund, the portfolio value increased to $33.66.
This represented a gain of $28.28 from the previous week’s value of $5.38, equivalent to an increase of approximately 525.7%. The majority of the growth came from options premium collected through our weekly Ethereum trading strategy.
By selling short-dated ETH options, we were able to generate additional income while gradually building the fund’s capital base. Although the percentage increase was substantial, it is important to remember that the fund was still operating with a very small starting balance. At this stage, even modest dollar gains could produce unusually large percentage changes.
Ethereum Options Premium Drives Growth
The Ethereum strategy was the main contributor to the fund’s performance during the week. Our objective was to generate consistent income by selling Ethereum options and actively managing the resulting positions. The $28.28 weekly increase demonstrated the income potential of the strategy, although future results were expected to vary depending on Ethereum prices, volatility, and market conditions.
TerraM Token Remains Flat
The TerraM token traded largely unchanged at approximately $0.86. At the time, liquidity remained extremely limited, meaning that the quoted token price did not necessarily represent a price at which a meaningful number of tokens could be bought or sold. For this reason, the fund’s operational performance and the TerraM token market price needed to be evaluated separately.
Bottom Line
By August 31, 2023, the Terramatris fund had grown to $33.66, increasing by $28.28 during its second week of operation. Most of the growth came from weekly Ethereum options premium, while the TerraM token remained flat at $0.86. Although the fund was still very small, the results provided an early demonstration of how options income could be used to gradually grow the portfolio.
This article documents historical fund activity for informational purposes only. It should not be considered investment advice. Cryptocurrency and options trading involve substantial risk.