Run With the Bears

It's been difficult to guess the direction of the market from day to day, but human nature tends to lean toward optimism, even as the market falls. Don't let that type of thinking cost you profits.

Sometimes the best-run companies and the strongest stocks get taken to task during a panic period like right now. And there's nothing wrong with buying some put options on even the best companies when they're going down -- options are not a permanent bet.

The beauty of trading options is that you can capitalize on the near-term direction of a stock. Even if you're absolutely certain that a stock price would be going up under "normal" trading conditions, there's nothing wrong with making some quick profits if it unexpectedly moves in the "wrong" direction.

We're sure your portfolio won't mind.