You could apply the same logic to options, but options might be better than futures because there is no margin call to worry about. 5x returns on some GOOG, RIMM, BIDU, AAPL options probably happen at least once a month. Start = $10,000 Trade 1 = $50,000 Trade 2 = $250,000 Trade 3 = $1,250,000
Good luck buying 50 thousand or more worth of options on a stock without destroying the price... Options are a marvelous instrument but they have a fatal flaw: your position size cannot be significant.