If this recent move proves to be an A-B-C correction, then some cheap puts are in order here. I bought some Jan 25 Puts. I also hold a BAC covered call position for Jan 35. So I am also acting to ensure protection against potential downside that can drop price into the low 20s.
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Puts in place and profitable at this point. As I'm looking for possible market advances, I'm also looking at the bull scenario to add to my long position. Of interest is how the trend lines are converging indicating that a rally may be forthcoming. Currently short the Jan 35 calls for a buy/write position. Considering buying June 24 35 calls just in case the bear scenario doesn't pan out.