Small Portfolio, Big Percentage Gains: Lessons From an Early Crypto Options Account

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On August 31, 2023, the Terramatris portfolio increased from just over $5 to $33.66 in one week.

On paper, that represented a gain of approximately 525.65%.

At first glance, that number looks extraordinary. In reality, the lesson was more nuanced. The gain was large in percentage terms because the starting portfolio value was extremely small. A relatively modest dollar increase can create an enormous percentage return when the base amount is tiny.

This early portfolio update remains useful because it highlights an important concept for new crypto and options traders: percentage returns can be misleading when portfolio size is small.

For broader context on the income strategies we later developed, see How to Generate Income With Ethereum Options.

Why Small Accounts Can Show Large Percentage Moves

Small portfolios can experience dramatic percentage swings even when the actual dollar change is limited.

In this case, the portfolio increased by approximately $28.28 during the week. Because the starting value was only slightly above $5, that translated into a percentage gain of more than 500%.

This does not mean the strategy suddenly became highly scalable or low risk. It means the portfolio was still at a very early stage, where small absolute gains and losses could create exaggerated percentage changes.

This is one reason investors should always look at both percentage return and absolute dollar return.

Market Context: Bitcoin, Ethereum and Crypto Volatility

During that week, the broader cryptocurrency market also experienced strong movements. Bitcoin traded higher, while Ethereum moved back above the $1,700 level.

Market sentiment improved after several important developments, including legal and regulatory news affecting the digital asset sector.

For small portfolios, these market movements can have an outsized effect, especially when the account is actively using options or other derivatives.

Why Percentage Returns Can Be Misleading

Percentage returns are useful, but they can also create a distorted picture.

  • A portfolio growing from $5 to $30 shows a huge percentage gain.
  • A portfolio growing from $5,000 to $5,025 shows a tiny percentage gain.
  • Both may involve the same dollar amount of profit.

The larger lesson is that returns should always be evaluated together with risk, capital size, and repeatability.

What This Taught Us About Building an Options Strategy

This early gain was encouraging, but it did not prove that the strategy was mature.

What it did show was that the account could begin generating returns from structured crypto exposure and active options management.

At that stage, the important questions were not simply how much the portfolio gained or how large the percentage return looked. The more important questions were whether the gain was repeatable, whether the risk was controlled, and whether the strategy could scale.

From Early Gains to Structured Ethereum Options Income

Over time, Terramatris evolved from small experimental trades into a more structured options framework focused on Ethereum income strategies.

The core focus gradually shifted toward strategies such as covered calls, cash-secured puts, credit spreads, position rolling, and risk-controlled premium selling.

For readers interested in the strategy that produced our first option premium, see How to Generate Income With Ethereum Credit Spreads.

Why Risk Matters More Than Early Performance

Early gains can create overconfidence.

This is especially dangerous in crypto options trading, where volatility can quickly reverse profitable positions.

A small account can grow quickly, but it can also decline quickly. That is why risk management matters more than headline returns.

Lessons From This Early Portfolio Update

Small Accounts Exaggerate Percentages

Large percentage gains are common when the starting balance is tiny. They should be interpreted carefully.

Dollar Returns Matter

A large percentage move may still represent a small absolute profit.

Repeatability Matters More Than One Result

One profitable week does not prove that a strategy is sustainable.

Risk Management Comes First

The most important question is not how much a strategy can make, but whether it can survive unfavorable market conditions.

Final Thoughts

The 525.65% weekly increase in August 2023 was an exciting early milestone for Terramatris.

But the real lesson was not that small portfolios can grow quickly. The real lesson was that percentage returns must always be understood in context.

Small accounts can show dramatic gains and losses. What matters over time is whether the strategy can scale, manage risk, and continue generating returns through different market conditions.

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Risk Disclosure

This article is provided for educational and informational purposes only and does not constitute investment advice, financial advice, or a recommendation to buy or sell any financial instrument.

Options trading and cryptocurrency investing involve substantial risk, including the potential loss of capital. Past performance does not guarantee future results.