We’ve been waiting for a rally to get short, and this could be it. I’ll suggest bidding 0.28 for a dozen December 20 39 puts, contingent on the stock (ETF) trading 40.84 or lower. The price is based on the 0.35 bid shown for the puts at yesterday’s close, then factoring in a 38-cent rally with the puts at 28 deltas. My goal is to leg into a vertical put spread at no cost. ______ UPDATE (10:14 a.m.): Lower the bid to 0.24 with JNK trading near the target, since the puts are only 0.30 bid at the moment with JNK trading 31 cents BELOW the target. _______ UPDATE (October 22, 1:30 a.m.): In the chat room yesterday morning, we settled on a 0.40 bid for six December 29 40 puts. Continue to bid them there, good till Wednesday’s close, but cancel the order if JNK trades above 40.84. ______ UPDATE (October 22, 9:11 p.m.): I’d hate to come away empty-handed just because this flying garbage pail didn’t quite reach its target. Let me suggest bidding 0.30 for eight December 39 puts, good for the first hour of the session only. _______ UPDATE (October 23, 10:40 a.m.): Someone bought eight of the puts for 0.35 on the opening, but that was as low as they’ve traded so far. Retain the 0.30 bid for now, but lower it to 0.25 if JNK is trading above 40.48. _______ UPDATE (October 27, 2:50 a.m.): We’ll try again later, since no one reported a fill in the chat room. Any interest here?
