Yes, I was extremely leveraged and made off like a bandit today. But again, it isn't the smartest thing to do- it isn't 100% as Armstrong says, and the usual trading trueisms apply. But there are times to be a pig and this was one of them.
For right now, I think the easiest way to go is with longer term puts and ride out the downside, as downtrends in the equity market are often volatile with big rallies. It is still near a top so wouldn't be too bad to get in now, I think, if this strategy is pursued. I'd like to go long in February based on what Armstrong says- until then, I would only scalp longs if at all. I see 2595 as having some decent support for an intraday trade on the long side
My SPY puts expire 2/1 (260 strike). Should definitely have gotten longer term puts because the Theta is starting to eat up and I don't think it's going down as hard as last time. Just like Marty said, the main thrust downward is in the initial window. Best to close the position tomorrow and pocket a nice gain and pray it goes down enough to outweigh the Theta. Worst that can happen is I get a little less than the 120% unrealized I have right now. Even closing at 80% profit is amazing to do if you do it on a semi-reliable basis. I don't trade often - I only pull the trigger when I "feel" it. Watch charts every day and never miss a beat on the patient. Hard to explain, but all the signs have to line up (of course I use TA) before I fire because options are fuck or walk.