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Are we Overbought? 20 Option Ideas to Profit & Protect Financial Stocks

Posted, by optionmaestro on July 28th, 2009

Another day in the books, but there still hasn't been too much selling pressure, with the S&P 500 down about a quarter of one percent. As I recently stated on my blog, I think there is a sell off ahead, or at least that is what the Volatility Index (VIX) is telling me.

Yesterday I chose to analyze 20 stocks from the NASDAQ (which is the index which has gained the most over the past 3 months), today I will perform the same analysis but by sector. If we do get a sell off I believe the stocks which will suffer the most are the financials, as they have had the best gains over the past 3 months. The chart below shows four major SPDR sector ETF's: Financial, Health Care, Technology, and Energy (click image to enlarge)....

Authored by, optionmaestro
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