Week 47: Targeting 0.01 BTC Through Strategic Reinvestment and Covered Calls

| Crypto | 5 seen

As we embark on Week 47, the TerraMatris crypto hedge fund is shifting its focus towards a new strategic goal: accumulating 0.01 BTC by the end of the week through a daily minimum investment of $16. This approach involves reinvesting in Bitcoin (BTC) and Ethereum (ETH) and leveraging market opportunities by selling covered calls. Additionally, last week saw significant market movement with Bitcoin dropping to $54,000, prompting us to roll 0.1 BTC to a December expiry and go long with a perpetual contract. This week, we're selling 0.05 BTC call options to further optimize our portfolio.

Bitcoin Market Overview

The Bitcoin market has been turbulent, with the value dropping to $54,000 last week. This volatility creates both risks and opportunities, and our strategy is designed to navigate these fluctuations effectively. By rolling 0.1 BTC to December expiry and entering a long position with a perpetual contract, we aim to capitalize on market recovery. This week, selling 0.05 BTC call options is a key part of our strategy to generate additional income.

Targeting $16 Daily Reinvestment

To achieve our goal of accumulating 0.01 BTC, we are committing to a daily investment of $16. These funds will be strategically reinvested into Bitcoin (BTC) and Ethereum (ETH), focusing on building our portfolio through disciplined and consistent investments.

Bitcoin (BTC)

Bitcoin remains the cornerstone of our investment strategy. Despite its recent volatility, we believe in its long-term potential. Reinvesting daily into BTC allows us to accumulate more of this leading cryptocurrency at varying price points, positioning ourselves for future gains.

Ethereum (ETH)

Ethereum continues to be a critical asset in our portfolio due to its robust ecosystem and widespread adoption. By reinvesting in ETH, we diversify our holdings and take advantage of the growth potential of this key blockchain platform.

Leveraging Covered Calls

Starting at the end of the week, we plan to sell covered calls against the 0.01 BTC we aim to accumulate. A covered call strategy involves holding a long position in an asset and selling call options against it. This can generate additional income, which can be reinvested into our portfolio.

Example Strategy

  1. Accumulation Phase: Invest $16 daily into BTC and ETH until we reach 0.01 BTC by the end of the week.
  2. Selling Covered Calls: Once 0.01 BTC is accumulated, sell call options with an appropriate strike price and expiration date to generate premium income.
  3. Reinvestment: Use the premiums from the call options to further invest in BTC and ETH.

Market Adjustments and Risk Management

Navigating the current market requires a proactive approach:

  • Market Analysis: Regularly monitoring market trends and news to make informed decisions.
  • Risk Management: Setting stop-loss orders and rolling options to limit potential losses.
  • Diversification: Balancing investments between BTC and ETH to spread risk and maximize returns.

Conclusion

Week 47 presents a dynamic environment for crypto traders. By targeting a daily reinvestment of $16 and leveraging covered calls, TerraMatris aims to accumulate 0.01 BTC and generate consistent returns. Our strategic investments in BTC and ETH, combined with sophisticated risk management techniques, position us to navigate market volatility effectively.

Invest with TerraMatris

If you seek to capitalize on cryptocurrency market opportunities, consider investing with TerraMatris. Our experienced team is dedicated to strategic investments and risk management to generate consistent returns for our investors.

Risk Disclosure

All investments carry risks, including the potential loss of principal. The cryptocurrency market is highly volatile and can experience sudden price fluctuations. Before investing, carefully consider your financial situation, objectives, and risk tolerance. Consult with a financial advisor if necessary.

Stay tuned for more updates on our trading journey and insights into the crypto market. Happy trading!