We caught the Dow upswing from it 200-day moving average, walking with gains of 62% and 27% on DIA October 167 calls the other week… But we were sure to jump out at double top, where the Dow is beginning to break down.
The Dow is insanely overbought on RSI and MACD… and could turn lower towards its 200-day moving average again. Because of that likelihood, we opened a trade using the DIA November 169 put, which is still on hold.
While we look at new trade ideas, we did want to exit two trades today.
First, sell to close the SPLS September 12 calls. The underlying stock is up $1 today on a long overdue upgrade, forcing these calls to 75 cents. We’d rather close it here than risk it to broad market decay.
Second, sell to close the GPRO October 38 put. This position did show a nice gain weeks ago on a pullback. But bullishness returned and sent the stock back up. This was part of a strangled hedge bet that saw returns of 43% and 84% with the GPRO October 43 call.