In retrospect, the 169.64 target noted a while back was a good place for bears to lay ’em out, since DIA has yet to exceed 169.58, the all-time high. Now, however, we’ll be looking to get slightly short, effectively straddling the bullish bet we made Tuesday in AMZN. Accordingly, if you hold calls in AMZN, you should try to buy 166-strike puts expiring on July 3 for 0.42 or better. I would suggest putting a bid in at the price on the opening only, since it would probably get filled if the broad averages open with a weak rally. If not, I’ll update guidance in the chat room. Remember, this play is only for those who are long in AMZN. (Note: We tried to buy the puts on the close with DIA in a very slight bounce, but the clock ran out on us.) _______ UPDATE (June 26, 12:12 p.m.): Subscribers reported buying July 3 puts at the 166 strike for as little as 0.33, but I’ll track two @ 0.40 to allow for less-opportune fills. In straddle fashion, they go against call options acquired in AMZN. One side of the position or the other could produce a nice profit, but only if stocks get a little wild over the next 2-3 days.
