Thursday, February 5, 2009

Tomorrow

I have a feeling that we'll get a huge rally on Monday, and I am heavily short.
  1. Tomorrow, I'll use any chance to exit SRS, all of them. And the puts, all of them. It may cost me 1K doing that, assume it's an up day.
  2. And I'll buy 20 qqqq calls. Reason, I have 3 QID, 10 qqqq puts.
  3. Then, when the plan is announced, if the market dives, sell all the puts. If the market rallies, sell all the calls.
  4. Long term I am bearish, but I think I can buy SRS back at 50s if not 40s if we have a 10% rally on Monday. And I can sell the expensive puts again.
  5. I may miss the opportunity.
  6. That market go straight to hell, which is unlikely, the PPT will rally and support the market, then it may tank. So I should have opportunity to buy SRS at 55, 50, even 45.
  7. SRS will go to 150 to 200 before it's all said and done.
  8. Now I don't want to have my head handed to me.
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