Toward the end of this session, we got immersed in an option trade, trying to leverage a rally target in DIA. Rather than positioning ourselves to buy puts when DIA reached our objective, we projected a ‘fair’ option price by using an ABC pattern for the option itself – in this case a slightly out-of-the-money weekly put with just a day left. The thought process is a study in Hidden Pivot logic – as detailed a study as you will find in the Rick’s Picks recorded archive of tradable ideas.
