Phelps Dodge (PD) Trade

I purchased some out-of-the-money put options the morning after that big short covering rally on Wednesday, July 19th. I expect PD to rally again and try to get back above the 50 dma so I'll probably sell those puts on Monday. I like the way the chart is developing so I'm sure I'll be making some more trades on the short side. I know you're not supposed to short a stock untill 5 to 7 months after the absolute top, but I just couldn't resist after that massive rally on Wenesday. What really sucks is that I narrowed my put buy list down to Phelps Dodge and US Steel late that Wenesday night. I went with PD and now I'm sitting on a 8% gain. That gain would have been HUGE if I would have gone with US Steel (X).