Finally after black Monday, things has sort of stabilized. From here onward till the end of the year, I believe the market will climb moderately slow. No driving factors, just the typical year end rally.
How I would trade in this market:
I have about 8 diagonal calls running.
I will be holding about 30% cash ready to deploy into the index and my fav SVXY like during the black monday for CRAZY CRAZY returns from just selling puts.
I will also be doing spreads, last month I only did 1 spread for a 40% returns over risk. Facebook closed above $90.
My NOV covered call hit my stop loss as it shoot so far up in a few days, I lost about $6K.. OUCH!!!
My latest trade I did last night,
Home Depot ( HD )
Bull Call Spread
Expiry NOV 15
Buy Call NOV15 115 @ $5.30
Sell Call NOV15 120 @ $2.67
Risk Over Reward if expiry above $120, 90%
Pretty good gains of 90% in 2 months.