DIA – Dow Industrials ETF (Last:199.17)

wild-blue-yonderWednesday’s wilding spree allowed subscribers to close out all but one of eight Dec 9 192.50 calls purchased on November 21 for 0.34. The intraday high for the options was 3.05, but as is my practice, I’ll use the worst price reported by a subscriber (2.35) to calculate the gain on the position so far: $535. To recount the details since Nov. 21: two contracts were to have been exited at 0.68; two more at 1.12 (with 1.06 used as a basis); two at 1.28; and one more (today) at 2.35. If subscribers were to cash out the single remaining contract at Wednesday’s closing price of 3.05, the total profit on the position would be $840. Some subscribers may have done better, since they reported having done the trade using a multiple of the eight contracts initially specified. With respect to the last contract, I’ll recommend offering it for 5.15, good-till-canceled. That price is pegged to a 19727 DJIA target that I first broached here a month ago, when the Dow was trading 1000 points lower.  Watch for updates, however, since exiting the calls at the best possible price could be tricky if we have to do it on Friday, when the options expire. My instructions for this trade have been detailed and explicit because the trade was intended in particular for subscribers who have never had a winning option trade. _______ UPDATE (Dec 8, 1:17 p.m. ET): ES 2250 and DJIA 19727 are targets somewhat out-of-synch, as you will have surmised. To play it conservatively, I’ll suggest cashing out the last DIA call now. They are quoted at 3.95/4.20, so offer them at 4.05, or in-between the bid and offer if they shift higher or lower. _______ UPDATE (9:42 p.m.): Acting on an intraday alert, subscribers blew out the remaining call(s) for as much as 4.15. Using a low-end price of 4.00 reported in the chat room, those who followed my instructions explicitly (as many of you evidently did) would have come away with a total gain of $935 less commissions for each eight calls originally acquired. ______ UPDATE (Dec 11, 6:46 p.m.): The little rapscallion appears headed for the 199.07 target, at least (see inset, a new chart), if it can get decisively past a variant at 197.77 that comes from using slightly lower B-C coordinates. _______ UPDATE (Dec 13, 9:23 p.m.): Buyers blew past 199.07 with such force that we should adjust our sights upward to the 204.05 target shown. The precise dance near p=191.25 suggests an exact, and presumably tradable, hit if and when 204.05 is reached. ________ UPDATE (Dec 18): The 15-minute chart has turned bearishly impulsive, with an immediate target of 197.46. Short-term traders should plan accordingly. If that Hidden Pivot support were to give way, however, it would be signaling more weakness. It would take a 196.11 print to turn the hourly chart bearish, but the rally target at 204.05 would remain theoretically viable nonetheless. _______ UPDATE (Dec 21, 7:26 p.m.): Zzzzzzz. Minor crosscurrents have left the short-term picture bullish, but DIA will have to vault a midpoint Hidden Pivot resistance at 199.71 to have a shot at the 200.35 target to which it is tied.