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[arbman]

Now if this is a true reversal, SPX should hit 1420, AAPL should not drop any lower and exceed 620 neckline. Hence, I am placing my stops to the lows of yesterday on SPX and AAPL. I have also protective puts for catastrophic events @ SPX 1380 puts, and AAPL 560 puts. For the record, I am trading ES futures longs and futures options with ~3-4x net leverage. However, the corresponding leverage is about 100% due to puts for the catastrophic declines (not 400%). I would loose up to 10-15% basically, while making up to 30-35%, or 3:1 trades. I have been trading this way for years, so I am comfortable. You should always trade with what makes you comfortable to sleep at night... Best of luck.