I’ve tired of waiting for this cinder block to reach our rally target so that we can get short. Instead, let’s try to leverage the downside by legging into a risk-free butterfly spread. This is never easy, but we won’t chase opportunities if they don’t come to us. For starters, and pursuant to building an October put ‘fly using the 50/46/42 strikes, let’s bid 0.53 for eight October 46 puts, day order. Don’t worry if the order goes unfilled, since we’re going to keep trying. ______ UPDATE (9:46 a.m. EDT): With stocks in their increasingly familiar collapse mode today, the October 46 puts opened up on a gap and never traded for less than 1.02. As implied above, as the Mother of All Bear Markets proceeds, there will always be other opportunities. For now, though, cancel the order.
