Subscribers should be holding four January 128 puts purchased for 1.00. (Some of you reported paying as little as 0.94, but it is our custom to use the worst price paid by a subscriber.) Our goal now, assuming DIA falls, will be to short puts of a lower strike for at least as much as we paid for the ones we hold.  If successful, we will have legged into a vertical bear put spread at no cost or a net credit, eliminating the possibility of loss. For now, be prepared to stop yourself out if the option falls to 0.70.

The chart shows how yesterday’s top closely coincided with a Hidden Pivot target that I’d deliberately ignored in choosing to use the ‘one-off’ A (labeled A2) instead of the more obvious one (A). It is mildly bullish that DIA slightly exceeded A=132.96, but I am suggesting nonetheless that you stick with the puts, using a 0.70 stop-loss, because I still like the trade. The stop-loss is necessary, at least for the time being, because it would be quite bullish if DIA pushes above such a clear target within a day or two of its being hit. The pattern itself took nearly a month to play out, after all, and that is why its ‘D’ target should be expected to show some tradable stopping power.