Chat room discussion suggests that some subscribers have been hard at work trying to short DIA by buying the Sep 140-135 put spread for 0.10-0.12. A corresponding rally target in this vehicle looks shortable as well, although there will be special risks in attempting it on a Friday. My suggestion is to initiate the trade with four contracts, using camouflage. Traders will probably need to zoom down to the 3-minute chart or less to find a perfect set-up, assuming one occurs. If the pullback that we expect from 1708.75 does indeed occur, be sure to cover at least two contracts before the bell. Although I doubt that Sunday evening’s opening will impale shorts on a spike, it’s a risk nonetheless, and we should therefore hold position size down to just one or two contracts.
