Feeling Bearish on the U.S. Market

Blue Bear statue outside of Denver Convention Center Annex

Mergers & Acquisitions have kept some buzz and infusion of money into the markets lately. Most notably private equity and hedge funds are throwing their billions in the pot. It seems like every other week I hear “Largest buyout in history.”

Latest Options Play

I am bearish on the U.S. stock market. I know it has had quite a run and everyone is throwing money in after being tired of sitting on the sidelines. Lately I find my sentiment translating directly into searching for bear plays. My latest is Lam Research (LRCX). I have an open order to buy 2 Sept 50 Puts @$2.55. Add this to my short position on Apple (AAPL) and you’ve got a guy waiting for some negative market news. I am betting directionally down at this point.

Which way Google?

I will probably add a straddle on Google (GOOG) as well. I feel it is almost done consolidating and will make a move soon. I just don’t know which way. A straddle will be the best way to play it.

Ironic – I’m on a Mac, used Google for my stock quotes and probably using some product that got designed using Lam Research tools.

UPDATES:

May 9, 2007 -  Ouch I’m down $70/contract.  Still holding in.  Technicals tell me to wait, my wallet tells me to BAIL OUT!  Still holding in.