It appears that the call was a bit early on the high, but the important thing to remember is that we are very very close to a short term high and profits for short term traders should be locked in, whether it be through options or outright selling of the position.
Aggressive option traders can begin to purchase a small line of put options in here and given the 50% rule on declines I think it would be safe to go just a bit out of the money. Not alot mind you, but just enough to give you the extra leverage. Make sure you do not over pay on the option either.
You can check the actual value of an option at http://www.ivolatility.com/ they have a free option calculator that allows you to change the variables.
One item to note is that as tempting as it may be to buy the December puts because of price, I would advise the purchase of the January puts just in case the correction takes a bit longer than anticipated.
I have also basically cleaned out the long positions in the Aggressive Equity Trading Account and I will have that updated tonight.
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