AMD strictly moderated (AMD)

[wbmw]

Re: I'd be very careful about shorting semiconductors into a
Fed reflation cycle. I think that liquidity will be constrained
in the short-term but a few months down the road, we could have
an interest rate top. Now the interest rates are the public
face of the Fed. But other liquidity operations can squeeze
the living daylights out of shorts.

The nice thing about leap puts is that you have quite a bit of time to iron out the stock volatility. You are describing very short term instabilities, but if you go for a Jan 2007 leap put, you'd be able to exercise it at any time before the expiration date.