Do you think that the House and Senate will work together to avoid the fiscal cliff by year end or not? If not,the stock market will drop like a lead balloon which could very well trigger a prolonged recession.
I honestly don't think they will work together to accomplish anything worthwhile. There may be some last minute agreement to avoid a disaster. However, it will only be another temporary bandaid. The market is due for another decline.
I plan to close most of my positions and buy both calls and puts at the same price level (Ex...PFE30 Call @ .10 and PFE25 Put @ .10). As long as the price exceeds .20, I can profit in either direction. It's not an extremely profitable strategy. But I would be covered in the event the market took an extreme turn in either direction.
Anyone one else have a different strategy or different idea?