After the close today, the S&P 500 Futures contract continued its downward momentum as algorithmic trading pushed the futures contract down below the 200-day moving average which is a decline of 7.9% from the price the index futures contract was trading at last week.

Sharp market selloffs often bring trading and investing opportunities. I have stocks like Amazon (AMZN) and Facebook (FB) on my wish list if the price is right. I will be looking for a short term trade on these stocks for a bounce from support levels. I may be looking to purchase bull call spreads on the weekly expiration. Both Amazon.com and Facebook weekly options are very active and liquid. They provide opportunities for directional trades as well as neutral trades.

Option trading strategies such as bull/bear call spreads, bull/bear put spread, calendar spreads, straddles, strangles, iron condor, iron fly and butterfly spreads can be easily implemented with weekly options in FB and AMZN.