How to Invest $100 and Earn Massive Returns in the Stock Market

I know many people who read this article probably think that you have to be a millionaire to earn money in the financial markets, or the stock markets too risky I might lose all my money. I'm here to tell you that you can make spectacular returns with only $100 dollars put up to risk, yes only $100 dollars.

Alright hopefully I have gotten your attention, to start off with we are not actually going to buy stock we are going to buy the options on the stocks, don't get scared this is still the stock market. We need to buy the options because since only $100 dollars is being invested you need extreme leverage, options offer this leverage. Owning 1 option can be the equivalent of owning 400+ shares of stock (wow). For starters a call option grants the buyer the right to buy 100 shares of the underlying stock, a put gives the buyer the right to sell 100 shares of stock (confused, don't worry about it). All you need to remember is that a call is for going up and a put is for going down (call up, put down).

I will introduce you to two simple strategies that you can use that will help yield spectacular returns on only $100 dollars.

The first is the "buy-out" strategy. A buy-out is when one company acquires another at a specific stock price (the company being bought out will usually be trading under the buy-out price). Now lets say Wal-Mart (WMT) buys-out Macy's (M) for 40 dollars a share and Macy's is trading at $32 dollars. Most likely the stock being bought-out will jump very high, but will not go directly to the buy-out price of 40 this is because investors still feel that there is a chance the company will not get bought out. Lets say Macy's jumps to $35 dollars a share. You would want to buy the nearest month option at the strike price of 35.

So if it's the first week of August you would want to purchase the August 35 calls but if it's the 2nd, 3rd, or 4th week of August always buy the September options These options should be trading for less than 1 point that is less than $100 dollars. So lets say its August 1st, you need to buy the August 35 calls and lets say they are trading for .50 this means that 1 call option cost $50 dollars. So you have the choice of either buying 1 call and only risking $50 dollars in return the profit will be less than if you had invested all of your $100 dollars.

The second option is to put all $100 up, this is the route I'm going to take for this example. So we bought 2 Aug 35 calls for $100 dollars when the stock was at 35 dollars a share. When the stock should go up over the next following weeks because investors will gain confidence that the buy-out will happen and they will decide to buy shares boosting the price of the stock up and in return boosting the price of your call options up. The stock will probably go to 38.50. Get ready for this that would be a profit of over $500 dollars +500%. This a great return on the stock, you only risk $100 dollars for $500 dollars. Trading Solutions can provide you the free software to do this all you need to do is to sign up for a free evaluation.

The second strategy that I am going to use profits if the stock goes down in price. You need to find the worst stock industry , the one that is down the most percentage wise for 3 months. Now pick the worst stock percentage-wise for 3 months in that industry make sure the stock has options available if it doesn't fin the next best one that has options available. Now all you need to do is buy a put at the nearest stock price in the nearest month. Ex. The utilities have performed the worst for 3 months and in that industry CEG is the worst stock with options. Its trading a 32 you need to buy the 30 puts and if it's the 1st week of the month you need to buy that month if it's the 2nd, 3rd, or 4th buy the next month. When the stock goes down you will profit. If the stock goes to 23 you can easily return 10 times your investment.

Good Luck
Andre Banks
Note: If demanded I will write a more in-depth article with more strategies and more reward. Social bookmark this