A Hidden Pivot rally target at 178.47 has kept us on the right side of the rally, although it has been our intention all along to reverse any long positions initiated along the way and get short when the target is reached. I’ve readjusted it down to 177.63 based on the pattern shown, and will now suggest bidding 1.20 for sixteen December 5 176 puts, stop 1.10, good through Thursday. The bid is frugal but reasonable, but you should stay tuned to the chat room in case we need to adjust the price on-the-fly. _______ UPDATE (10:15 p.m.): Wednesday’s gratuitous dipsy doodle did nothing to diminish the value of the 177.63 target flagged above. We’ll stick with the plan.______ UPDATE (November 13, 6:40 p.m.): Options on this vehicle are too thinly traded to bother with. Instead, I’ll suggest shorting the stock in the range 177.54-177.63. The lower number is a Hidden Pivot resistance associated with a new rally pattern created yesterday. You should risk no more than 10-15 cents per share on the initial stop-loss. _______ UPDATE (November 20): Check out the DJIA tout above, since it contains an actionable play in this vehicle. _______ UPDATE (November 21, 9:55 a.m. EST): DIA popped to 178.60 this morning, slightly above the adjusted target given in the $DJIA tout above, but I’m still waiting to hear from subscribers who bought puts before I establish a tracking position. _______ UPDATE (November 21, 4:00 p.m.): Quite a few subscribers were able to get short in timely fashion, including one apparent heavy hitter who reported buying 50 December 5 178 puts for 1.10. Any puts acquired with DIA trading near the 178.47 target provided in today’s DJIA tout would have produced a winner, since my target caught the 178.60 peak of an opening-bar short-squeeze within 13 cents. The rather substantial selloff that ensued to 117.27 provided an excellent opportunity to take a partial profit. If you haven’t done so already, you should nail down some gains on Monday so that a move to new record highs would still allow you to come away a winner. Remember, we are still in a bull market, and the odds will therefore be heavily against directional bets made with naked put options. That is why we must always reduce our exposure at the first opportunity. ______ UPDATE (November 24, 2:08 a.m.): Although fills in several different series were reported in the chat room, I’ll use eight December 12 175 puts @ 0.60 — four cents above where they opened — for a tracking position. Please continue to report positions so that I can adjust to better reflect your actual experiences. For now, offer December 12 171 puts short for 0.60 against what you currently hold. (You should use a price and quantity equal to the long side of your position.) _______ UPDATE (10:28 p.m.): If the calls already held trade below 0.40 stop yourself out of the position. This order should be held o-c-o (one-cancels-other) against the short sale of puts at the 171 strike.
