The Diamonds took a manic leap on the opening, then slithered higher for a couple more hours before reaching a 168.02 Hidden Pivot rally target that has kept us properly bullish for the last week or so. Subscribers reported buying August 29 167 puts as I’d instructed. Accordingly, I’ve established a tracking position of four puts @ 0.82 for your further guidance. They are to be tied to a 0.57 stop-loss, which would imply a theoretical loss of 0.25 per contract if the stop is hit. If that should occur, my hunch is that this vehicle will go on to test the old high 300 points above. The puts traded yesterday as low as 0.70 even though DIA went no higher than 168.12 intraday, but they’ll have to ‘come home’ today or else, since the combination of time decay and just a little more upside will sap their value quickly. Alternatively, if things do go our way, I’ve suggested shorting August 165 puts for what we paid for the 167s: 0.82. The execution of either order will cancel the other. ______ UPDATE (9:16 p.m. EDT): Traders exited the put position on a 0.57 stop, taking a $100 hit. We’ll back away for now while DIA flirts in headless-chicken fashion with the old record high.
