DIA has blown past the midpoint Hidden Pivot at 186.90 with such force that there’s little doubt it will achieve the 195.15 target (see inset). Although I am usually reluctant to buy call options except when the underlying vehicle is at a targeted, corrective low, we can put in a stink bid and cross our fingers: Bid 0.34 for eight Dec 9 192.50 weekly calls, day order. FYI, I am using a Hidden Pivot pattern that projects a 0.32 low on these calls. They closed Thursday at 0.42, down from a recent high of 0.56 on November 15. If the order fills, we’ll try to spread off the risk by shorting 194.50 calls later for 0.34 or more. ________ UPDATE (Nov 20, 10:16 p.m. EST): Numerous subscribers reporter filling the order, so I’ll track eight Dec 9 192.50 calls with a 0.34 cost basis. For now, offer eight Dec 9 194.50 calls short against them for 0.34, good till canceled. ________ UPDATE (Nov 21, 12:30 p.m.): Turns out there are no 194.50 calls, so we’ll use the 195s instead. Do nothing for now, but stay tuned for updates.
