Well I am predominately in growth/tech stocks (feel free to cringe, I have been lately). I have been slowly transitioning from my normal strategy and want to share with you all.

Last month, I cut out all options and brought that to cash, my portfolio has been falling I have been practicing what I preach by DCA'ing that cash into my existing positions and even picked up some new ones (hat tip to the CS community for the ideas!). Now I find myself down to my last bit of dry powder to deploy. Here is my plan.. time will tell how it works out.

I am going to attempt a good old fashioned alley-oop!

So I am desperately praying that Santa's fat ass shows up next week for a rally. If he does (and probably if he doesn't) I am looking at S&P and NASDAQ Puts for a bit of insurance to protect my depressed positions. As you all know, puts appreciate as the underlying assets depreciate. Despite all the pain I have been feeling in my portfolio, the averages have been holding up well. I believe this is due to the way they are calculated where the largest components really drive the index meaning the smaller stocks can tank and barely move the needle as long as companies like $AAPL hold up.

So the alley-oop is what I am calling the play. Why? if the market gets an end of year rally puts will depreciate and be a great time to buy. I will buy long term puts on the NASDAQ and S&P to protect me on the downside. If we get a post holiday crash (and if history is our guide it is not uncommon for this to happen) these will appreciate. I will then sell them, and use the capital to again, layer cash into my existing positions. So, I remain a long term bull of the market, but in the short to medium term I am a bit concerned. Inflation, lame-icron, rates and tapering will weigh heavily on the minds of investors over the near term. If they get spooked this is how I hope to capitalize on what is happening not what I want to be happening.

Stay tuned. If this works, it will be totally bad ass, if it doesn't I will be happy because it is implying the damn stocks I own are actually going up.