Stocks

[Rupert Pupkin]

Originally Posted by MaTH716

Rupert, Do you know that they now offer weekly contracts as well?

The problem with the Dec puts are that they are 27 pts out of the money. So you are going to need another major sell off for these things to go up. Volitility most likely exploded this week with the market getting creamed, so the puts are skewed to the high side causing you to pay up. But that goes for any kind of strategy you would have put on (spreads, straddles, combos etc....)
I like the July's better. Only a couple of points out of the money and could become good with another dip.
I always hear that you should never buy out of the money options. But reguardless and good luck with your positions. I also think we are going lower, but unfortunately I am also a conspiricy theorist and think Washington will just cook up some good numbers to stop any kind of temporary spirals.

I practically never buy options that are way out of the money. The only reason I'm doing it in this case is because Harry Dent is predicting a huge crash between now and December. So I'm taking a shot. I could just short some Spyders but then I would have unlimited downside risk. I'd rather just buy these puts.