I avoided getting burned on my short positions by selling ahead of the fed rate cut. I don’t bet against the fed.
I believe the FOMC inspired Fool’s Rally (the last two days) has already run out of steam.
So today I moved over half my portfolio back into aggressively bearish market positions (“SDS” inverse fund). I saw that QQQ puts and SPDR puts were well priced so I bought some of those also.
I found these attractive after running spreadsheets across strike prices, maturity dates:
QQQQ Jan-09 $55.00 Put (OZCMC) looks cheap, offering a 50% profit for only a 10% market correction.
The QQQQ Mar-08 $51.00 Put (QQQOY) also looks cheap, doubling your money for a 10% NASDAQ correction.
The SPDR DEC 20, 2008 $ 160.000 PUT (CYYXD : OPRA) also looks tasty.
An earlier entertaining post in this thread mentioned a list of “What I’m certain will happen”
Personally, I’m certain you WILL make money if you buy puts offering a 50% profit return in response to a 10% market correction over the next 12 months from current (overpriced) levels
We will probably end up with a 30+ percent market correction across all the US indexes.
