If 1375 gets hit it provides a low-risk shorting opportunity. Buy SDS June puts when 1375 is hit. Close puts if SPX closes over 1382 or risk 15% of option price, whichever happens first. If the market breaks down after getting fill, sell 25% of position on each down day with break even stop on remainder. 2/27 to 3/1 may mark low before potential retest of highs later in March.
There is very key timing 3/9 to 3/12 and also 3/20 area, presumably part of a topping process in March. Will be looking to re-short then if the market accommodates.
Kim Rice 2/20/12
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment