same as i’m in now, short the financials and builders…

i’d look for a strike and expire that minimizes cost while still being in reasonable range of movement… so like, i picked up dec 32.50 puts on citi, 12.5 dec put on cfc… expire is really close for dec though so i dont know if it’d be worth it at this point. but again, jan and farther out contracts are probably going to be decent buys.

one thing i’d had luck with is buying the trend on or near expiration. so like, i saw some stock, wfc maybe? last month that was moving up (or down, cant remember exactly) and was within a half dollar of the nearest strike. the contracts were selling relatively cheap so i threw a few bucks at it. sure enough, the trend pushed it far enough to make money. i was guessing/rationalizing at the time that expirations and short covering was the reason for the day’s uptick. this time around, i think covering calls will push things down through expiration day.

btw, i just started playing earlier this year. i’ve been up as much as 50% and down as low as 30% off. i’m generally takling out of my ass on this stuff so dont take my opinion with any serious weight. if anything, i’ve noticed that any time i mention an option play with my boss who is a permabull, i get creamed the next day. he even took to playing opposite of any play i take. and although his last play was looking good (cfc call @ 12.5), he either cashed out and made money before today or he got creamed… and let me mention my etrade debacle, went all in a month too fricken early, got demolished, went back in the next month for a timid amount that made everything back and then some. but damned if only…