This is a viable option.. something I thought about. But, $300 margins is little too risky even for what I am trying to do. There is no way you can hold on to your postion..
Be patient. Watch for a "potential capitulation downside washout (like Aug 16)", and load up on slightly out of the money call options.
he is not able to focus on the market and will miss a move like this.....what else u got up ur sleeve...I want to take a huge gamble myself...was loooking to short CFC for quite some time and have not pulled the trigger...any other ideas??
The OP sounds like someone who is used to flipping real estate etc Or atleast wants a similar strat. These kinds of strategies work at 90% only in a bubble. The OP therefore needs to find a market somewhere in the world (and easily investable from the US) that is in bubble mode and looks like it might last for another year atleast.
$100,000 to me is worth 20x more to me than $50,000... that's a hard math to follow, but that's how it is. My marginal utility of dollar on the downside is very low, while it is very high for higher amounts.
Everything is a guess. You have to pick your vehicle and bide your time. Considering the market's upside bias (general and always), I like the idea of buying a call option on something which has shown Relative Strength during a panic decline.
That's actually not a bad idea - wait out the regular days and when there's panic selling, be ready to step in and buy - etf's, options, futures, etc. Easy money.
I find this very compelling. You could do far worse things with your money http://www.marketforceanalysis.com/Pubished Articles/assets/COMEX GOLD OPTION OI.pdf Ad