I’d flagged a Hidden Pivot target at 178.23 as a promising place to try to get short, but we might also test the water at the trendline shown, since it looks likely to show some stopping power. The resistance will come in at around 176.62 on Tuesday, and you can initiate the short by buying four April 8 176 puts with DIA trading between 176.55 and 176.68. This is a day order, and the puts would be a good buy for perhaps 1.00-1.10 with DIA trading in the stipulated range. ______ UPDATE (March 29, 2:32 p.m. ET): Lower the bid for the calls to 0.85-0.90, day order, but don’t pay up. Stop yourself out of the calls if they trade for 0.65. _______ UPDATE (6:36 p.m.): We’ll back away from the trade, since the calls picked up just enough volatility on the close that we’d no longer be stealing them if they come. That’s still possible on the opening rotation, when the market makers get to rig the spread, but even then it would be tricky business for us to be go-along buyers.
