Discussion in 'Options' started by nitetrader, May 11, 2009.

  1. Topping out soon me thinks...

    Whats a good strategy here if I'm bearish?

  2. dmo


    Depends on how you see it. For example, if you want to play for a sharp, imminent drop, you can buy puts. To determine which puts you want to buy it would help to know how far and how fast you think it will fall. If you're not sure of the timing or sharpness of the drop but are pretty sure the market won't go much higher, you could sell calls.

    There's an options play for every nuance. So think hard what you feel is high probability and what you're not so certain of, and take it from there.