Why I only buy puts ...

Discussion in 'Options' started by neophyte321, May 17, 2006.

  1. neophyte321

    neophyte321 Guest

    days like this.

    Weak trending stocks get hammered....
     
  2. I agree with you about focusing on buying puts on stocks when the market looks OB. But my research shows some of the best plays are on stocks which have the strongest 12 month relative strength (vs the underlying index). What I look for is a discernable double top in the stock with topping weekly macd, daily macd divergence and divergence in the 20-30 day relative strength (vs. underlying index). Ka ching!