Unlike the E-Mini S&Ps, which I’ve suggested shorting at 1767.00, this vehicle will not be at a new all-time high when it reaches an equally fetching Hidden Pivot target. The precise number is 156.13, and I’ll suggest buying eight November 155 (monthly) puts if and when DIA gets within a few ticks of the target. The puts should be trading for around 1.00-.105 at the time, although I cannot guarantee that this estimate will be within even 0.10 of actual. The price is unlikely to be lower than 0.99 however, since the puts should gain ‘juice’ as DIA rallies. I haven’t specified a price for the puts because I don’t want you to miss this drum-rolled trade merely because I was off by a few cents. Please report any fills in the chat room so that I can establish a tracking position. I’ll use a median price rather than best or worst case, with a free month’s subscription for whoever achieves the best fill. ______ UPDATE (October 29, 12:01 a.m. EDT): This short looks a little safer to me than the one I’ve suggested in the E-Mini S&Ps, so we needn’t make much of an adjustment, just this: Use a stop for the puts 0.25 below whatever price turns out to have been a pretty good buy. I’ll fine-tune this advice in the chat room when appropriate, so stay tuned. _______ UPDATE (12:17 a.m.): DIA November 155 puts expiring Nov 22 look like they’ll be a good buy for around 1.34 with DIA at or very near my 156.13 target. Bid 1.35 for eight, stop 1.10. We are risking $200 theoretical. ________ UPDATE (12:50 .m. EDT): Based on reports in the chat room, I’ll use a 1.34 price as our cost basis. For now, stop yourself out if the puts trade for 1.09. I may tighten the stop, so stay tuned. Our theoretical risk for this speculation is $200.
