Are we having fun yet? In Wednedsday's Live Trading Webinar , we discussed using $58.50 as a shorting line for Oil ( /CL ) Futures and we had a couple of small dips but we finally caught the big one this morning.  We don't need to be so quick to jump back on and re-short as we'll certainly get a strong bounce AND it's a holiday weekend – so " THEY " are as likely to drive us back to $58.50 as they are to panic out and sell .    That's why, last Friday , we went with the Ultra-Short Oil ETF (SCO), picking up the March $9 calls at 0.65 – to play for the post-holiday drop without having to worrry about the Futures over the weekend.  Those calls dropped to 0.55 on Thursday, as oil topped out, but finished the day at 0.72 and we have 35 days left to play, looking to make 0.25 x 50 contracts at 0.90 is $1,500 on our $3,250 outlay (50 contracts in our Short-Term Portfolio).   Similarly, we played the Russell ( /RTY ) Futures short at 2,300 (as noted Tuesday in: " Tuesday Trouble at 2,300 on the Russell 2000 ") and, so far, that's been good for $1,250 per contract but were up $2,500 per contract on yesterday's dip and we should have taken that money and ran – but we didn't.  Though I still like them for a nice, weekend hedge. Keep in mind that it's only a hedge when you have long positions that will gain as much or more than your potential loss on the (in this case) short position if the market goes higher – otherwise it's a BET and BETTING on the Futures is a very dangerous thing to do .      IN PROGRESS