On April 04 I bought 500 shares of CCL for $30.95 Since then it has gone up & down and is now at $31.98 a gain of $501.00 counting the sell comm. That works out to 3.24% in 13 days. That may not sound like much but when you annualized, it comes out to 90.86% a year.
If I sit on this for a year I might expect a PPS of $35.xx maybe? That works out to a gain of $2011.00 or 12.99%. Naturally $2011. is more that $501 but my money would be unavailable for a full year as opposed to a mere 13 days. By trading I can buy on the dips & sell on the pops or get into something else entirely. I'm not sitting there watching it go up & down and up & down day after day. In other words if you could keep trading that $501 every 13 days(365/13=28 28X501), after a year (in a perfect world) you would end up with $14,028.00 which makes 2 grand look bland.
I just "bailed" intentional pun. lol. $32.586 made $803.63 in 15 days. 5.19% simple 126.31% annualized. So now I have about 16 grand to put in a nice high yield CEF that's paying about 11% monthly and wait for something else to come along.
Of course another method is to continuakky to sell monthly puts. That way you are getting a "monthly dividend." Of course, you can't partiipate in a huge rally, but it's a safe way to make money on the stock wih some leverage.