Why would it rally? The S&P is now at the lows seen in November, a potential level of support for prices. A low risk way to enter a trade would be to use 'options', and buy a 'Call spread' on the SSO (S&P leveraged ETF).
The example below shows the April $16/20 call spread at a purchase price of $1.50 (this spread is currently trading at $1.78, but I expect the market to pull back a little more before it rallies, so if you put this order in ahead of time, chances are good that you will get it for $1.50, maybe even $1.30 if it goes low enough).
Maximum profit on this trade is $2.50 per contract (or $250); maximum loss is what you paid for it $1.50 (or ($150). Of course if it goes in your favor, you could close it early e.g. at a $3.00 price and make a nice 100% profit from $1.50 > $3.00 (instead of waiting for the full profit at a $4 price). Similarly, if it goes against you, you could close it early to avoid the maximum loss of $1.50 per contract.
Here is what it looks like on a chart (courtesy ThinkorSwim):
The chart shows a potential 100% profit with SSO trading just above $21 on March 21st.All trades are for demonstration and educational purposes only. No recommendations are being made, nor is any advice being given.
