Proshares UltraShort Real Estate (NYSE: SRS) closed at $50.71 Wednesday. SRS seeks daily investment results that correspond to twice the inverse daily performance of the Dow Jones U.S. Real Estate Index. SRS January option implied volatility is at 140, below a level of 180 from mid December. February volatility is at 137; above its 26-week average of 129, according to Track Data.

Ultra Financials ProShares (NYSE: UYG) closed at $6.03 Wednesday. UYG daily investment results correspond to twice the daily performance of the Dow Jones U.S. Financials Index. UYG January option implied volatility is at 91, below a level of 118 from last week; March is at 109 according to Track Data, suggesting March movement.

Powershares DB Multi Sector Commodity Trust (NYSE: DBA), a rules-based index consisting of agricultural futures contracts, closed at $26.18 Wednesday. January option implied volatility of 43 is near its 26-week average of 41, according to Track Data, suggesting non-directional price movement.

Option Update is provided by Stock Specialist Paul Foster of theflyonthewall.com

"We see the growing risk of a watershed decline very soon," warns Martin Weiss, editor of The Safe Money Report. For those looking to speculate on a downside move, or to hedge an otherwise long portfolio, the advisor looks at several inverse ETFs which benefit from a drop in stocks.

"With a new, potentially bigger wave of the credit crisis sweeping Wall Street, and with the latest energy price surge gutting corporate profits, the U.S. stock market is poised to suffer a far sharper and deeper decline.

"Our near-term forecast: A rapid fall - perhaps including a crash - to the market's 2003 lows: 7200 on the Dow, 770 in the S&P 500 Index, and 1100 in the Nasdaq Composite Index.

"That's too much, too fast for you to just 'ride it out' as many on Wall Street are recommending. oreover, it's too soon to say if those levels will be the final bottom; the market could fall even further.

"With the exception of of selected resource companies, we recommend unloading nearly all stocks. In addition, we suggest buying inverse ETFs, which rise in value when the market falls. Here are our highest priority recommendations:

UltraShort Real Estate ProShares (ASE: SRS)
UltraShort Technology ProShares (ASE: REW)
Short Dow 30 ProShares (ASE: DOG)
UltraShort Consumer Services ProShares (ASE: SCC).

"These four are inverse ETFs - exchange-traded funds that you can buy and sell just like any other ETF or stock, but with one critical difference: They go up in value when the market index they're tied to goes down. And we think they're ideal for this situation."

Each day, Steven Halpern's TheStockAdvisors.com offers the latest market commentary and favorite investment ideas from the nation's leading financial newsletter advisors.