After purchasing four DIA August 98 puts not long after the opening yesterday for 1.28 and taking profits on two of them later at 1.50, we still hold two with an adjusted cost basis of 1.06.  We also have four July 96 puts acquired earlier for 0.70, and we’ll plan to spread off the premium risk thereof by selling other puts against them if stocks continue to fall.  Yesterday’s collapse following an opening-bell head-fake was as refreshing as a summer dip in a lake, but we shouldn’t allow ourselves to be lulled, since the pullback so far has not gone “impulsive” on the hourly chart. Also, the upward flick in the final moments of the day suggests there are still a few shorts who are not exactly cool about letting their profits run. Please note that by taking a partial profit on the puts, we are now in good shape to weather a breakout to new highs (specifically, to a Hidden Pivot target at 107.73 given here earlier) without getting much underwater on our position.