<kind of a paired trade>
That's essentially what I've had going. It's really an arbitrage that says short financials/tech/retailers (FTR), and a few other tulips are way overvalued relative to energy stocks (long). I never go long calls or puts, but right now put premiums are cheap so it might work. You could get this kind of action though (first plunge coming off the #5 top), which will make straight long puts hard to time:
Message 19514520
Just taking the last three days of market drop, Friday was a big day for me as FTR was down, energies were up, yesterday was a slight gain both were down, today was solid up as FTR was down again, energy kind of mixed. I expect to see mostly days one and three type action. The oil and NG inventory numbers this week and next could be eye openers.
<suggestion or two there.>
If you only can use three, I'd say just use a fund like Fidelity Select Energy Svs, and Select Energy. I've had most of my names (nothing too exotic, familiar stocks, you want larger stuff that will catch the sudden rotation from institutions, not small unknowns IMO )for a year or coming up on a year, so I'm in position to go long term if things get hot. I did buy some TNT today however, first energy purchase in awhile, and a little different.
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