S&P 100 index - OEX - close: 456.38 change: -0.96 stop: 451.90

Why We Like It:
If you can't beat them, join them! We've been waiting for a correction in the market but it may not happen until the S&P 500 tags overhead resistance near 1,000 first. Instead of sitting on our thumbs let's see if we can capture part of that move. However, instead of trading the S&P 500 or any of its ETFs I want to use the OEX, which tends to be a little more volatile so we can get more bang for our buck.

I'm suggesting a trigger to buy OEX calls at 458.10. If triggered our target to exit is 469.00. More aggressive traders may want to aim for the 480 region.

FYI: An alternative trade could be the double-long S&P 500 ETF the SSO. Use a trigger above $29.75 and a stop at $28.90. Or you could try the small cap ETF (symbol IWM) and use a trigger above $55.50 and a stop under today's low. Or even the midcap ETF (MDY) with a trigger just over $114.00 and a stop just under $112.00. Target the $117.50 region. These are all very aggressive, very short-term. I would use a very small position size. No matter what you trade just keep an eye on the S&P 500 index and the 1,000 level.

Suggested Options:
I'm suggesting the August calls.

BUY CALL AUG 455 OXB-HK open interest=1557 current ask $10.10
BUY CALL AUG 460 OXB-HL open interest=3347 current ask $ 7.60
BUY CALL AUG 465 OXB-HM open interest=2515 current ask $ 5.50

Annotated Chart:

Picked on     July xx at $ xx.xx <-- see TRIGGER @ 458.10
Change since picked:      + 0.00
Earnings Date           00/00/00 
Average Daily Volume =        x  xxxxxx  
Listed on  July 28, 2009