On February 6, I opened a tiny XRP trade. Not because it will move markets. Not because it will fund early retirement. But because it’s a clean, honest example of how a buy/write strategy can work even in crypto.
Think of this as poor man’s crypto hedge fund experimentation: low stakes, existing collateral, mostly for fun but with real mechanics and real money.
On February 6, I bought 66 XRP at $1.51 and immediately sold 66 call options with a $1.70 strike and March 27, 2026 expiry.
This is a classic covered call. The XRP itself serves as collateral. No leverage, no margin, no liquidation nightmares. Capital involved is laughably small which is exactly why it’s useful as an example.
The math is refreshingly simple.
Buying 66 XRP at $1.51 cost $99.66.
For selling the calls, I received a premium of $0.09 per XRP, or $5.94 total.
That premium immediately reduces my effective cost basis from $1.51 to $1.42 per XRP. Before anything else happens, I’m already paid.
If XRP is above $1.70 at expiry, the calls will be exercised and my XRP will be sold at the strike price.
The price appreciation alone is straightforward:
$1.70 minus $1.51 equals $0.19 per XRP, which on 66 tokens is $12.54.
Add the option premium of $5.94, and the total potential income becomes $18.48.
On a ~$100 position, that’s roughly an 18.5% return over the life of the trade — capped, predictable, and emotionally boring. Which is exactly what covered calls are supposed to be.
If XRP finishes below $1.70 on March 27, 2026, nothing dramatic happens.
The options expire worthless. I keep the $5.94 premium. I still own all 66 XRP. My effective cost basis stays at $1.42, and I can repeat the process by selling another call.
This is the quiet advantage of selling options: time works for you, not against you. No need to predict moonshots just let volatility pay rent.
This isn’t a “strategy reveal” or a fund pitch.
The trade is minimal on purpose. It uses XRP I already hold as collateral and risks nothing beyond price fluctuation I’m already exposed to. It’s closer to a live notebook entry than a serious allocation.
But small trades are great teachers. They force you to respect structure, understand payoff asymmetry, and accept capped upside without ego.
This trade isn’t about XRP specifically. It’s about mindset.
Covered calls don’t belong exclusively to equities. Crypto options allow the same logic: reduce cost basis, define outcomes, trade boredom instead of excitement.
Will this outperform a raging bull market? Of course not. Will it outperform panic, overtrading, and bad timing? Almost certainly.
Poor man’s crypto hedge fund — but with rules, math, and no illusions.
Want to join our poor man’s crypto hedge fund? That’s basically what TerraM token is about. No Lambos, no promises, no dopamine farming just structured crypto trades, option income, and learning in public. If that sounds more interesting than chasing the next shiny narrative, TerraM might be your kind of boredom.
