A Hidden Pivot resistance at 46.91 is equivalent to the 1146.50 rally target in the E-Mini S&P.  Let’s prepare to short this vehicle if and when it gets to the target by buying two February 46 puts for around 0.75.  That is a very conservative price and assumes the implied volatility for this series will remain constant, but you can pay up a smidgen if you need to.  The target seems likely to provide precise stopping power, and that is why I am not putting a stop-loss on the order.  However, because it is especially difficult here to estimate within a dime or so where the option will be trading, and because the order might fill on a Friday at the closing bell, I have decided not to make it a Pick of the Day trade. For those of you who are new to Rick’s Picks, here’s the lowdown on Picks of the Day:  [UPDATE:  The Cubes traded no higher than 46.64, so we did nothing on the order.]

From time to time, when we spy low-hanging fruit, we offer a Pick of the Day. The goal is to provide very easy trades that will effortlessly make you back the cost of your subscription. They are for traders of all levels of experience, but particularly for discouraged novices who have never cashed a winning ticket on puts or calls. I do NOT track my P&L, since, as you will already know, such statistics are used mainly to trick skeptical traders into buying newsletters. Rarely if ever do subscribers achieve the level of success claimed by their gurus. However, I would encourage you to ask those in the chat room whether they have indeed made money with Picks of the Day. These trades have seldom been losers, but I’d rather you trust the memory of a subscriber who got nipped for a C-note blindly following my advice before you do so yourself.