A Santa Claus Rally?

Hi Shoppers,

I am thinking all these dojis in the major indexes are pointing to a possible rally this morning.

To take advantage of this, I like the ProShares UltraPro Short S&P 500 (Ticker: SPXU):

Wednesday’s doji may be an indication of SPXU to trade lower.

Looking at next week’s puts:

 

Be sure SPXU is trading lower for at least an hour before placing your trade.

Depending on where SPXU opens, I like the Dec16 15.50 or 15 puts.

Buy the put that is closer to at the money which will have the higher gamma.

I think SPXU could possibly trade back down to $14.

Thanks for Reading … See You Next Tuesday.

Licia Leslie

Licia Leslie

Licia Leslie

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About the Author

Licia Leslie

Licia Leslie

Former CBOE floor trader and CIO at Karman Line Capital. Author of ‘The Option Traders Hedge Fund’ with over 30 years of options trading experience.

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