Earlier, I had suggested buying Nov 22 150 puts if DIA hit a Hidden Pivot rally target at 171.67. Yesterday, the stock head-faked to an all-time high at 171.57 before recceding sharply to 170.22, but our lowball bid for the puts stayed just out-of-reach. Let’s try again, but without being so niggardly: bid 0.47 for the puts, good for the first 10 minutes of the session; then, if the order has not been filled, work it with the goal of buying midway between bid and offer. Wherever you buy the puts, assuming you do so for 0.50 or less — my limit here — stop yourself out of them if they trade for 0.20 less than you paid. ______ UPDATE (Sep 7, 10:20 p.m. EDT): The puts opened at 0.54 and traded as low as 0.47, but I’ll use 0.50 as a tracking price. As suggested above, you should stop yourself out if they trade for 0.30. Against that offer, and on a good-till-canceled basis, offer four Sep 30 150 puts short for 0.20. _______ UPDATE (Sep 18, 1:15 a.m.): The puts traded as low as 0.33 yesterday, so be prepared to get stopped out. I’d suggest using a 0.30 stop-limit for the first 30 minutes or so, since put sellers could get raped if DIA opens even moderately higher.
