After-Hours Trading Strategies for S&P 500 (SPY) Investments

Friday, 13 September 2024, 18:31

After-hours trading has emerged as the best strategy for S&P 500 (SPY) investments since its launch. Investors can greatly benefit from trading during after-hours sessions for maximized gains. A study shows that after-hours trading yields impressive returns of 992%, closely rivaling the buy-and-hold strategy.
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After-Hours Trading Strategies for S&P 500 (SPY) Investments

After-Hours Trading Advantages

Investment experts have identified that after-hours trading in the S&P 500 ETF (SPY) provides significant profitability. Over the past 30 years, this strategy has achieved an impressive 992% return, closely following the buy-and-hold approach.

Comparative Strategy Performance

  • Buy-and-Hold: Risen by 1,138% since launch.
  • After-Hours Trading: Yields 992% gains.
  • Intraday trading rendered only 13.3% in the same period.

How After-Hours Trading Works

The essence of after-hours trading involves buying SPY at market close and selling at the next day's open. The subsequent movements, often driven by earnings releases that occur post-market, result in substantial stock price fluctuations.

Despite the potential, it is crucial to note that the after-hours market can be riskier due to lower liquidity and higher institutional dominance.

S&P 500 (SPY) Current Status

As of today, the SPY trades at $562.59 with a year-to-date increase of 0.63%. Current expectations highlight an upcoming Federal Reserve meeting, which is anticipated to influence market movements favorably.

Final Insights

Overall, after-hours trading has proven to be an essential strategy for maximizing gains in the S&P 500. Investors need to stay informed and assess the risks when trading outside regular market hours.


This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.


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