11:50am (EST) The market continues to trade lower as the Dow is now off by triple-digits.  At 9,234, the 103 point loss shows the nervousness Wall Street is experiencing ahead of the FOMC meeting.  It still is up in the air if this rally continues but if it doesn’t we can start to open a few small positions on the short side. One stock that I have been watching is Moody’s (MCO, $24.65, down $0.57) which I have mentioned several times in this space.  The September 25 puts (MCOUE, $1.90, up $0.25) are getting a little action and I think Moody’s could trade $20 by September.  Try to get in for under $2 and do half positions. I’m also looking at Wells Fargo (WFC, $27.11, down $1.53) and the September 26 puts (FHUUZ, $1.30, up $0.45).  I like these put options up to $1.50.  There have been over 8,000 contracts traded thus far while the Moody’s options aren’t quite that liquid. So, let’s just WATCH the Moody puts and roll the dice on Wells Fargo.  Bank of America (BAC, $15.94, down $0.74) is taking a hit so let’s close the position and move to the sidelines.  The November 17.50 calls (BYOKZ, $1.25, down $0.24) traded to a high of $1.58 and are at our entry price while the November 20 calls (BYOKT, $0.57, down $0.13) are still showing a slight profit as most of you got in for 50 cents.  I normally don’t make knee-jerk reactions and these calls were “rolled-over” from a previous position.  I’m just looking ahead to September and after such a huge run, we are bound to pull back.  Rick@MomentumOptionsTrading.com]]>