DIA – Diamonds (Last:104.25)

Yesterday’s opening-bar short squeeze noticeably failed to pierce a pair of weakling highs recorded in mid-August, subtly hinting of buyers’ gutlessness right now. We rarely speculate on such things, but what could it hurt to take a couple of put options home over the weekend? Treat this trade like a likely loser — meaning, don’t buy more than the couple of put options I am about to suggest. Make them October 101s, which settled yesterday at 1.39.  A price anywhere between 1.25 and 1.35 would be okay, but keep in mind that they will start to feel the weight of expiring September puts toward day’s end, so if you are modeling their fair value, Monday’s date is the one to plug in. _______ UPDATE (12:41 p.m. EDT):  We bought two October 101 puts on the opening for 1.33, a penny off the so-far intraday low. Now, put them out of mind for the time being.