Tell me why this is a stupid move

Discussion in 'Trading' started by iumba04, Mar 2, 2007.

  1. iumba04


    Planning on shorting the consumer discretionary ETFs by buying some slighlty out of the money puts. Putting all my eggs in one basket as I truly believe this is a rare opportunity.

    Reasoning :

    Subprime lenders tanking
    Banks tightening
    No more House ATM withdrawals
    Consumer spending set to collapse

    Any other suggestions as how to play a drop in consumer spending for a small retail investor ?
  2. Why not leave at least one egg for breakfast tomorrow?
  3. I don't trade options, but I would imagine the IV has gone ballistic this week. Depending on your strategy, that could matter a lot.