The choppy action of the last two days has created “dueling” impulse legs, a usually reliable sign of more tedium to come. In this case, however, we should probably infer no more than that confusion and uncertainty reign, but that this could end with a vengeance if some piece of news unsettles traders as it inevitably will. Use a 55.88 rally target — slightly higher than the one given here earlier — to buy four September 55 puts. As before, if the puts trade for 0.25 less than what you paid for them, exit the trade. I will further suggest that if the position is showing a profit of at least 0.30 per option, close out half of the puts.
