A 1551.12 target proffered in today’s $INX tout finds its equivalent at exactly 155.67 in the equity-based SPY chart shown here. It is a place where we should plan on shorting aggressively, and although we’ll leave ourselves an out as always in case it doesn’t work, this trade deserves a little more leeway. The target is unlikely to be reached today, but we should plan on buying four March 155 puts for around 2.35 if and when SPY gets within 0.20 points of the target. That price is a guesstimate based on the current price of the March 150 puts. We can fine-tune the bid when the opportunity firms, but my explicit intention is that we not pay up more than a few cents, since every penny counts when you’re on the buy side of a put trade. ________ UPDATE (March 11, 1:40 a.m. EST): With March puts expiring in a week, you could have bought April 155 puts instead for around 2.40 on the opening. The Marches traded between 0.99 and 0.84, but I’ll wait until I hear from traders in the chat room before I establish a tracking position. For now, however, I’m recommending that you stop yourself out of any puts acquired if they trade 0.20 below the purchase price. Alternatively, if they trade for 0.30 more than you paid, cash out of half. ______ UPDATE (March 18, 1:05 p.m. EDT): Only one fill was reported in the chat room, and because it was stopped out, I’m dropping guidance for the trade.
