They call me The Fireman, that's my name

http://www.youtube.com/watch?v=W2NFkCNIDxI

Now that that is out of the way, I wanted to address a smoldering hot issue: V (Visa Inc). Today presented itself with a unique waterfall event in V shares as it got pummeled after some news on the credit card fee issue (effects MA and others as well).

A stock that is rolling down a hill like a massive snowball is not a trade for most, and I do understand that. There are, however, those of us who will at times spring in to action to trade the reaction to such a drastic drop in share price. I will take my Welding Gloves out of the freezer, put them on, and get focused.

I am one of those. I will do Knife Catch plays when appropriate. So why the fireman reference? Well I  searched for an analogy that would somehow put into perspective just how prepared one must be to execute a Knife Catch play -- in order to ensure the higest probability of success. So I figured who better to reference than a fireman.

If you consider what a fireman must do to stay ready at all times, to be able to act on a moments notice, it seems quite relevant in comparison. In the case of this type of trade, you have to be ready in mind, body, & spirit to tackle a trade where emotions are running at elevated levels. You have to understand support levels, certainly understand technical analysis in detail, but in addition - you have to know how to be calm.

During the course of the drastic drop in price, I made the decision to trade JAN call options. I chose the 75 strike. This is my bet of choice on more higher priced stocks, especially when I want to make a significant bet.

I prefer to buy call options when no one wants them, simple.