While I belive that the markets will be heading south at SOME point, I have been expecting a significant drop for several months now - based on fundamentals and reality, however, without any significant payback. Most of my puts have actually lost money, so I have recently changed my strategy.
Incidentally, the one I have never lost money with is FXP and the recent volatility has helped with this.
My strategy is simple now - focus on FXP. Purchased 2,000 share at 9.09. Sold 1,000 at 9.50 yesterday. Sold 500 more at 9.60 today. Stop loss at 9.50 on the other 500(executed).
Friday's action may allow for reentry at around 9.20. If not, will wait for mutual fund monday.
Would love to hear other opinions here and recommended entry points.
I was waiting for it to drop below 9 but I was regretting not being in Thur morning; but that upswing petered out anyway. Last time I was in at 9.15 I made +10% in 5-6 days. Just lucky but I feel comfortable anywhere under 9. If it goes below 9 I am looking to buy maybe $50k for a few days. If it was to get down to 8 I would feel really safe and probably go $100K. Those are 2 to 3 times the amounts I would put into a long term investment but you can make 5 or 10k pretty quick here and get out. Seems like more upside potential than down right now.
Again, the EUO trade is more comfortable for me at this time, been happily holding that for 8 weeks. But at some point it will probably pay very big to hold FXP, I love to look at the one year chart. If I can get in low and get up 10% quickly I might let it ride a while.