Buy Puts Tomorrow--Crash coming.
September 30, 2008
– Comments (10) |
RELATED TICKERS: DIA
, IWM
, SPY
I called Monday's crash Sunday night: http://caps.fool.com/Blogs/ViewPost.aspx?bpid=92110&t=01008631960540474609 I regretfully must call another crash... Congress' insistance on reviving the bailout nonsense will send shockwaves of terror across the bond and currency markets, thus crashing equities again.
As soon as the bill is voted for, short as much stuff as you can. The market is set to roll again and bust through S&P 1070. We're in the eye of the storm, everything looked calm and quiet today, but as soon as the bailout is proven to be a big non-event--it doesn't fix anything--the market will resume crashing. October puts should work, but if you're a more conservative speculator, but November puts. S&P 110 puts, IWM 65 puts, and DIA 100 puts appear to be the optimal strike prices... of course calculate the greeks tomorrow before jumping in. Wait for the vote, we should get the best entry for puts and shorts in the few minutes following the vote before the bond market implodes into a pile of radioactive waste...at which point the equity market will begin its big crash. Be ready, we're about to get the shorting opportunity of the year--if you though Monday was fun, wait until you see October!
Disclosure: long XLF calls, short GLD, TLT puts, long TXN calls, long BWP calls, long WNR calls, and short GG, mostly in cash... however, as soon as the senate votes tomorrow, I'll be dumping the XLF calls and going in hard on IWM and DIA puts.
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