Last week, we experienced a great run higher after the disaster in Japan several weeks ago. Will the stock market run out of steam this week? Check out potential trading strategy in USO, as it may go down this week causing the stock market to continue to move higher... Would you consider PUT Option in USO this week? Check out this video and form your own opinion.
Here is my recommendation on trading Options for Monday, March 28:
- Buy PUT Option for USO as there is potential for it to decline this week.
- Buy CALL Options on high volume stocks such as GOOG, AAPL, NFLX.
For both of these trades, your exit strategy would be to sell Options as S&P500 reaches 1330 level.
If stock market heads lower instead of higher tomorrow, then wait to buy any Option until S&P500 reaches 1295-1300. Obviously you would buy CALLs at that level.