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Revision History For: Internet stocks: How to profit from the inevitable crash

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Return to Internet stocks: How to profit from the inevitable crash

Since a 90% retracement of the high P/E internet stocks is inevitable, and increasingly likely to be occur before August due to decreased liquidity by the fed, we should discuss the best methods for the average investor to profit in this environment.

Specific options strategies will be the main focus of this thread, since it is often extremely difficult to find common shares available for shorting. Options also limit the potential loss to the amount invested, whereas shorting common shares can theoretically lead to infinite losses.

The model portfolio:

AOL July 90 puts (AOESR) 1 9/16 50% of portfolio
AMZN July 90 puts (QZNSR) 2 9/16 40% of portfolio
DCLK July 70 puts (QWESN) 3 10% of portfolio