Bigworld, Looks like that poster I mentioned previously ('Wallstarb', who was formerly at G.Sachs, now with a hedge fund) is putting on some 'gamma trades' again -
I'm starting to get short the overall market and also putting on some "gamma trades" which are more bearish then bullish - but allow you to bet against a stock or index with limited downside risk.
Here's a post from a few months back with a simple explanation of the trade, but in a nutshell you get long some inexpensive calls (cheap implied vol) and the more in the money they are the less you benefit if the market goes higher. This trade will make more $$$ on a market selloff because volatility will go up (you can look at the VIX as a "general" indication on how cheap/expensive options are) and the options will benefit. <<<
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