Discussion in 'Options' started by tradingjournals, Feb 7, 2011.
QQQQ at 57.93. What is the best way to play the downside using options?
sell the mar. 48 calls for 9.90
but the trend is still up so you would be picking a top.
not a good idea. wait for the turn
1) It depends on how bearish you are. You have to be more precise about describing the "downside" that you hope/expect to unfold.
2) Never refer to trading as "playing", ever.
Size of move?
Time needed for the move?
Amount willing to lose if wrong?
"What is Best way to play the downside"
Go long. Have you seen this thing? #*&@, the Arabs could all get the bomb and nuke half the West and all of Israel - and we'd be up 15% on all the great rebuilding opportunities that were just created. The One could announce new capital gains tax rates of 200% and we'd tack on another 20% gainer `cuz now nobody wants to short and make money, plus nobody wants to sell, plus we're one step closer to a balanced budget.
Who could possibly kill this Golden Goose? We're lining up daily to shag the thing, but it doesn't die, it just lays even bigger golden eggs. So we all might as well get in line a couple times every day.
Downside???? Not sure what you are talking about. Is that when the market doesn't go up? Or is it when it actually falls and ends the day/week/month LOWER?
I remember my grandfather talking about it. I'm pretty sure that sort of thing doesn't happen anymore...
What downside? It's up, up, and away!
Sentiment seems to be bullish. Interesting.
Still interested to know about juicy ways to play the downside.
There are only 6 trading hours left before the beginning of thursday.
be patient.........vix 9.8 around the corner.........that's when they will give your fries with the put option you buy.
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