roger,
if you are really worried about another drop, i would sell a portion of my portfolio...
you never have to sell everything at the same time. just set up some levels where you feel that if they are crossed, then it either confirms or unconfirms what you believe is going to happen. be sure to figure out what you're going to do given each scenario before the market actually gets there. that way, you won't be going by emotions alone.
unless you have a pretty good grasp of options, i would not recommend them as you can get your head handed to you if you don't know what you're doing. (very bullish, bullish, neutral, bearish, very bearish)...each of these opinions would generate a different strategy. they can be the riskiest things in the world but you can set them up to be not very risky if you use them right. [this is what i'm still trying to figure out].
if you're interested in learning more, try the following site:
optionscentral.com
then click on the icon for free software. if you can, you should go to the seminar and get the software...that alone is worth a day off from work. and also, the software is free. if you do go, bone up on what delta's are...you'll ask more intelligent questions that way. i wouldn't exactly recommend the video though.
good luck. |
