theories and eventually started trading. But keep in mind that a strategy like this is easy to produce on paper because in hindsight, we already know when the lowest point was for each year. While trading on margin provides investors with additional leverage, it can be extremely risky. But Grittani has been able to profit because it's such an inefficient market. (To learn more about options, check out: Option Basics: An Introduction. This example assumes buying one share of SPY on the open on the first trading day of each month. Small moves in the underlying ETF generally translate to significant movements in the options. At one point he was 1,300 in the hole. The key is to buy them ahead of the crowd said Grittani.
options on Small-Cap ETFs, while it may not be possible to trade options in specific penny stocks, it's still possible to use options to leverage the potential of the small-cap or micro-cap universe. Strategy 3: The.02 return becomes.50 return after fees. I ran the numbers on a few different stock investing strategies using historical prices over the past five years for the. Related: What does it take to be wealthy? S P 500 spdr ETF sPY ). And it's not for everyone.