I am not sure what should I do. I only have a small VM position (50 sh at 102) but I am worried about my other longs and I just do not have the stomach to login to my brokerage account and see what my portfolio is worth now.
What do you other Longs think about this market (not just about VM), I mean what are you doing about your other longs. A good friend of mine had been predicting this but I ignored him citing holiday season. And he has been telling to protect my longs by buying options and buying EURO, NZ & CA dollars, etc.
It depends on what your Portfolio looks like. If you are holding high fliers, risky bets like VM, RIMM, BIDU, etc. you have things to worry.
But if you are diversified in Oil, Gold, Export oriented companies and are value oriented, you probably will be fine.
Buying put options may be a good bet to protect your longs but in times of extreme volatility like this one, the options become pricey too. Take for ex. a Jan $90 put (you are insuring your stock for up to $90 till Jan) is going for close to $18. So if the stock goes to $50, your $18 puts would be worth at least $40-$50. But the point is you are shelling out nearly $18 to protect a $40 slide. And hence options (puts) may not be that cheap a idea.
Best thing to do is to be on the side lines with lotsa cash and diversified long positions.