Option Strategies During This Market Downtrend....

Discussion in 'Options' started by bhairava, Mar 7, 2008.

  1. bhairava

    bhairava

    Good day.

    I feel that the U.S. market is in a downtrend that will continue for six months--until trading is suspended.

    Does anyone know which option strategies are best(i.e., bear credit spread) during this 6-month time interval?

    Is anyone buying naked calls on U.S. stock indices? Which one offers the best spreads? If anyone has analyzed probabilities of future(i.e., 6month) price action during this interval, what expiry dates would they recommend, to avoid exposure from probable upswings?

    Any help is well-appreciated.

    (Please PM me if you prefer to keep your anonymity).

    Thank you. Mike
     
  2. If i were so sure about the direction I'd buy straight OTM (puts) on the major indexes.
     
  3. "Untill trading is suspended" Huh? want to let us in on that one?
     
  4. QFT
     
  5. bhairava

    bhairava

    Thanks alot for the replies Daniel, NQscalper and Maverickz.

    Since large/mid capitalization stocks may also be a good play here, does anyone consider any particular equities to be relatively over- valued?

    NQscalper, any Nasdaq shorts in mind?

    Do you kow of other ways to short the dollar, other than buying puts on the dollar index?

    Any and all replies are most greatly appreciated.
    Thans alot.