Same thing happened. Last time the market ran up so hard a couple of weeks back (early June), the next day it dropped 400 points. Same thing happened this time. My financial puts got absolutely slaughtered late yesterday due to the run up. Shorts covering, people thinking the market's too low and stocks are cheap? Not until I see the VIX at 30, but more likely it'll run up to 35. If I had some more guts, I would have bought some more puts late yesterday or early today, cuz I had a sense that the market was gonna take back it's gains.
I seriously have no idea why people are even bothering with financials. Don't they see that every time they jump up, all the smart people use it as a chance to get the hell out? A couple of days to a week later, those stock are even lower. Just look at the chart people! Wise stock traders know to buy high and sell higher. Can't it work the same way with stocks going down? Buy puts on a falling stock and sell when the stock is even lower? Sure you might get killed, but, wtf, stock market is just educated gambling no?
One a side note, the only stock I wanna see run up hard is GOOG, right before earnings, to say...oh...600 or so, so I can get the 560 put for a buck and watch it fall to the 520s. Seriously, start buying some GOOG, cuz the market is cheap!
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