The immediate rally targets I’ve flagged in the Dow have equivalents, respectively, at 164.16 and 165.65 (see inset). It is the latter where I would suggest trying to get short, and you can do so much more aggressively (i.e., in greater size) if you are reversing a long position held on the way up. Use four March 14 165 puts, which I estimate will be trading anywhere between 1.25 and 1.45 with DIA mere ticks from the target. That’s an educated guess, based on the fact that with the underlying at 163.57, the March 14 163 puts were 1.42 bid at yesterday’s close. In any case, you should monitor the bid/asked spread on the options as the target is approached to get a better handle on their true value. And as always, you shouldn’t pay up more than a penny or two, because every penny counts in this game. If fills are reported in the chat room, I will establish tracking guidance. I have provided no instruction For getting long, since it’s likely to be a bitch. _____ UPDATE (March 6, 7:03 p.m. EST): Some traders are already short the E-Mini S&P based on the lower of two targets given for that vehicle, but the short suggested for this one from 165.65 is still viable.
