I hope everyone has checked out the Options Playbook.  If you haven't, go take a look.  The Playbook is a great how-to for option trading.  What's your favorite play to run?

I think you are right about the financials. They will head back down after the Fed meeting on the 11th.

I was looking at chart of LEH. Over the past few months this stock looks like it would have been a good candidate for Iron Condor spreads. Am I right on this, or have I missed some criteria that would have nixed that strategy?

Depending on what happens between now and the expiration of my June 08 call on MCGC, I'm looking at writing a covered call on my 100 shares, thus creating a bull spread.  I'm looking at making at least $250 plus dividends and option premium should the stock go to 15/share this year.

I maintain a watchlist portfolio of "subprime dogs" and as I read about various companies, index funds and index options that will be affected by the subprime meltdown I add them to the list.  Then as I take profits and need to make another move I look at the charts, see who hasn't been hurt that bad, who has bounced, and try to research why.  I pick the ones with the most potential downside, buy cheap out of the money put options and set a sell price for a 50% to 100% gain.  So far my activity has been limited to DHI, CFC & LEH and I'm looking to buy some WM put contracts.  I'm also looking for another homebuilder play--the whole sector has had a small bounce lately and I can't quite figure out why.

I watched both of my long calls on MCGC go ITM today.  One expires this month, and the other in June.  Hope this nice runup isn't another dead cat bounce.

I like fundamental analysis based partly on the Motley Fools "Hidden Gems" newsletter strategy, a hunt for cash-strong and low-debt small-cap to mid-cap companies with good prospects not based on my personal love of their product mix. I don't go for short term call options on these but like to look a year or so out, depending on the company type. Many don't have options at all, so that eliminates them. Mixed in with these for some balance, I like to go with large-cap and mega-cap company share call options where I think the stock price is unreasonably underpriced.

The option play book is a great reference.  I am partial to the iron condor but will certainly give the new FRO's a try.  At the moment, the field for those are new and it will take time to build up the volume.

Credit spreads and selling puts are my favorites, and I use covered calls in IRA's