With the Trump Rally looking winded, we discussed buying some DIA put options for a speculation in the chat room on Friday. Ideally, we should do so when DIA is rallying and the puts are weak. Accordingly, I’ll suggest bidding 1.15 for four DIA March 24 210 puts on Monday, day order. That’s four cents above the 1.11 target shown, but we’ll have a good chance of getting filled if stocks begin the week with a lurch higher. Typically, DaBoyz would take advantage of this by dropping their put bids down to levels well beneath fair value in order to mug retail customers who have entered orders to sell the puts at-the-market on the opening. DaBoyz could conceivably shut us out by bidding a penny or two higher on the opening rotation, but even if they do — just to be nasty — we have nothing to lose from trying. Our edge over DaBoyz lies in our knowledge of where, exactly, the puts should bottom if the broad averages open on Monday on moderate strength. ______ UPDATE (March 13, 7:58 p.m. EDT): Extend the put bid for another day, through Tuesday. If it goes unfilled we’ll consider going out an additional week.
