In this article I’m going to show you examples of how the market moves and how you can make profits. Not just from the SPY (S&P500) but other stocks as well, stocks like Google, Amazon, Netflix and more. I have seen profits of over 500% or More in just a 15 min to 1 hour time period. Profits that can make your day, week, or month. And Like I mentioned in my previous article, the SPY and other big name stocks has lots of volume and with volume comes volatility and price movements..price movements that can be profitable for you. I will show you pictures of what I am talking about. The prices of these options where either brought at the exact price at the time or a few intervals above or below the current price at the time
Let’s look at the two pics below..Remember this is only part 1.
Pic #1 Here is an example from the SPX (S&P 500 index fund..not the ETF). If you have good charting software, iphone app, or website that can track the market in real time that would be fine. If you look at the top of the picture. You can see the option went up over 70% in one day from $13 to over $22. BUT….The real story is price that the option started at open and most important the range. The option for this day started at 5.95 and ended at 22.42…not the $13 from the previous day. If you traded at open to close for this day you could of made a profit of over 200%! instead of 70%..WOW. What is even more crazy is the day’s range (the date was July 24 and the option expired that same day or the next day..I think), the lowest point was 5.20 and the highest was 23.09. If you where a really good trader or just lucky, you could have made a profit of over 300%! But it gets even crazier…but keep in mind, most of the options expired in the same day or the next day or two. Lets look another example….
This is the same S&P 500 index fund with the same day expiration date. You can see here that the increase of value for this option is over 120% from the previous close at $1.88…But like I said regarding the first picture…That is not the real story, take a look at the opening price, that’s right it’s only 0.35 cents! So, if you had an idea that the option was going up at the opening of the market and brought in and kept this position near close at least or close out of you position at the highest point, you would have made a over 1000% profit, BUT if you brought this option at it lowest point and sold at it highest point which, by the way, can occur early in the trading day. You would have made an over 2000% profit..WOW. Yes..Over 99.9% traders are not going to achieve this, but I am just showing you what is possible.
Stay Tuned for Part 2