If this selection process is applied to F&O stocks for the downward move also, we could find best opportunities to short (Or Buy PUTs) and earn big by carrying over the trades (for 2 or 3 months, if needed) leading to super profits.
But if there is some reason for not concentrating on short inviting stocks, kindly share your view.
For example from MARUTI as we exit if we can enter either in to a short (with strict S/L) or buy PUTs (with S/L based on stock move), we can earn a lot, I think.
Of course there could be possibility of huge gap ups spoiling the contra (to the LT direction) trades, I can understand.
As the period of correction is sufficiently long to manage the short trades, will it be worth ?
Or waiting for the next buying opportunities is the best way to avoid unexpected shocking gap ups ?
Please share your view, when possible.