While holding all other positions, sell to close the second half of the DIA November 169 put. These last traded with a bid-ask price of $4.15 x $4.20. I just want to protect the gain should the Dow move slightly higher before resuming yesterday’s 267-point plunge.
Also, on Monday night, I issued a buy on the DIA December 2014 170 put up to $4.50. The very next morning, the Dow pulled back 100 points, opening our puts at $5. Despite being above our $4.50 entry recommendation, I did hear that several of you did buy at $5, watching the Dow pullback another 176 on the day.
I’ll be happy to track this in the portfolio at a $5 entry price for those that bought in. The Dow did do exactly what I thought it would do.
After watching what the market has done over the last two weeks alone, I’m shocked I have hair left. While I’m still arguing for a retest of the 200-day, if we break that, the Dow falls to next support at 16,400, 15,490, and 14,750…
Hopefully things won’t get that bad once QE3 ends, but I’m preparing us for anything and everything.
Hold all open positions.