In case we are not in a dowturn and market wants to go higher its best to pust some pair trade in both direction.
One of the stock which will move higher aggressively with market is NFLX. Thers is a option play here.
.NFLX130316C200-.NFLX130316C210-.NFLX130316C220+.NFLX130316C240 for 1.19 on march 03 -2013.
If the market dips and NFLX goes down to 180 from 189.37 it can considerd buy @ around .60 cents.
In case market is targeting 1585 by april we can also think about april options.
Trade back test - on 1/23 or 1/24
.GS130316P130-.GS130316P120-.GS130316P115 if you were betting on negative outcome you could get this for 50 cents.
if you had +ve expectation
.GS130316C150-.GS130316C160-.GS130316C165+.GS130316C170 for 1.70
or .GS130316C155-.GS130316C160-.GS130316C165+.GS130316C170 for .55 cents.
we need to trade highly liquid and market dependant stocks to make money this way.
So if the market is going higher best option as of now is Goog and NFLX
Goog for april calls -
.GOOG130405C810-.GOOG130405C820-.GOOG130405C830+.GOOG130405C840 for 2.0
or march 16 th call
.GOOG130316C810-.GOOG130316C820-.GOOG130316C830+.GOOG130316C840 for 2.70
or
.GOOG130316C815-.GOOG130316C825-.GOOG130316C830+.GOOG130316C835 for 2.21
Instead of doing this complicated options trade we can also buy little longer term spread.
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