Can Anyone Make More Than 100 Profit from Something?

Thanks for your question. First and foremost, it's crucial to clarify the timeline you're referring to, as the strategies discussed can vary depending on whether you're looking at hourly, daily, weekly, or monthly transactions. My experiences are from a daily basis. Indeed, it's possible to make 100 or more dollars in a single day, and in some cases, even make profits surpassing 1,000 dollars within the same timeframe. Over the past 25 years, I have traded in the stock market, commodity market, and forex market, and I can confidently say that high-risk investments often yield high returns.

How Does Risk Relate to Returns?

The higher the risk you're willing to take, the higher the potential gain. One area where this is particularly evident is in the forex and commodity markets, where you can see significant fluctuations in short periods. However, trading in the stock market involves a different set of risks and may not offer the same level of leverage and reward.

Real Example: Trading with Leverage

Let's consider an example using the stock ROKU as a useful case study. On a given day, the stock was priced at 87.81 per share and increased by 4.34, which totals a 5.21 gain. Now, imagine you had a ROKU call option that also surged. During the same period, the stock option gained 4.77, giving a total gain of 1.54.

When you leverage your investments through options, the gains can be multiplied significantly. For instance, in this specific scenario, the gain on the option was almost 50% of the gain on the stock. However, it's essential to be cautious, as options carry higher risk and can potentially result in a loss of the entire investment.

Understanding Leverage with Stock Options

Leverage in the context of stock options amplifies the gains or losses. To illustrate how leverage works, let's use a quick calculation. If the stock is up 5.21 and the option is up 4.77, we can determine the leverage factor using the following formula:

Leverage Factor (Change in Option Price / Change in Stock Price) (4.77 / 5.21) 8.42 times.

This means that for every dollar the stock price changes, the option price can change by 8.42 times the amount, making the investment more lucrative but also riskier.

Calculation to Estimate Potential Returns

Let's consider the potential of this strategy with ROKU. The stock's share price dropped from around 490 to the current price of 88. If the stock price were to return to its previous high of 490, the share price could theoretically increase by a factor of 5.56. However, since the option is leveraged 8.42 times, the total return factor would be:

Total Return Factor (5.56) * (8.42) 46.8 times.

To visualize the potential, an initial investment of $1,000 would grow to $46,800, a $10,000 investment to $468,000, and a $100,000 investment to $4,680,000.

These figures are impressive but also highlight the critical importance of understanding the risks involved in leveraged investments. Always trade safely and responsibly.

Final Thoughts and Conclusion

Yes, it's completely possible to make more than 100 dollars in a single day. Stock options offer a unique opportunity to magnify potential gains, but traders must be aware of the associated risks. If you're interested in exploring these opportunities further, take a look at stocks and stock options. Remember, this is not financial advice, and trading stocks and options involves risk.

Stay safe, stay informed, and happy trading!