06-21-2016, 06:38 AM
You can trade options with relatively little money, and the upside is huge compared to owning the actual stock. For example, you could buy options that cost $9 for a stock that has a current price of $135. If the stock goes up 50% in price, the options could go up 300%. I'm making these numbers up just to give an example.
The LinkedIn options I bought a week before the Microsoft announcement went up 250% while the LinkedIn stock went up 47%. If I had bought riskier options, I probably could have made 500% or more. The catch, of course, is that options have an expiration, so you are taking a bigger risk, but the reward is great.