There can only be one Highlander

I don’t care if the market goes up 10% today (well, I do, but it won’t). Even with the DJI pushing up over 340 points right now, the NASDAQ up over 60 points and the S&P chugging away over 37 points, I’m happy with my puts. That’s right Ben, bring it on bitch! I’m not going anywhere and just to be sure, I was smart enough to buy April puts.

So when I see the market climbing to current highs, I know that it’s not the time for the market reversal. This is not a new trend, this is a gimme that won’t occur again tomorrow or next week. Beware the buying that is going on right now, it’s masking the shorting that is occurring quicker.

Let me give you my best example of what is happening right now. We all have had a friend or family member that has credit card issues. Whenever they have a credit card they max it out and then only pay the minimum amount due. When something happens and they are able to pay off the card (inheritance, lottery, theivery) only time is the determination of how long until they owe the maximum again and are paying the minimum amount due.

People don’t know how to deal with money, so they spend it. This is why a majority of lottery winners are stupid and will continue to be stupid. There are countless stories about lottery winners that are broke. They go back to the way they were before the lottery.

The market will go back to the way it was before Ben dropped a load on the markets.

Until that time, I took an oppotunity to buy a put in JCP. This time, since I don’t have the money to buy lots of puts, I only bought one in JCP. I thought about buying 20 this morning but talked myself into the GOOG trade instead.

Buy:
JCP Apr08 $42.50 put (JCPPR), 1 @ $4.20
stock price entered $40.25