Were bulls saved by the bell?  By my lights, the Diamonds were on their way down to at least 96.13, or possibly even 95.42, when yesterday’s session ended.  If so and the lower number is approached, that would bring our short offer of four July 90 puts within range. Time decay has pushed down their value since I first suggested offering the puts for 1.40, however, and they would now be worth closer to 1.00 if the underlying vehicle hits 95.42 by week’s end.  Accordingly, I’ll suggest lowering the short offer to 0.95, with 0.10 of discretion. The important thing is to short them irrespective of their price if and when DIA gets near  95.42.  We continue to hold two August 98 puts for 1.06 and four July 96 puts for 0.70.  I’ve included a snapshot of the calculator I used to determine a fair value for the puts.  The 37.5 volatility comes from TradeStation. _______ UPDATE (Friday, July 2):  DIA fell to 96.17 today — four ticks from the projected low — setting up the obligatory pre-holiday bounce/waft.  Although there is zero buying interest other than very feeble short-covering, sellers still lack the inspiration and/or moxie to effect a washout.  The 95.42 target is still valid, but bears should be cautious about the rally threat because of the precise bounce that has occurred from our first target.