Fear has reached an epic level on Wall Street. Every one is running scared. Consider selling to close the DIA December 2014 170 put today, as well as the PETM October 70 put now deep in the money.
Once you close out those positions, consider buying to open the DIA December 2014 166 call up to $4.30. Do not risk the house on this. There may be further loss on the market, but we’re trying to buy ahead of a change in direction ahead of elections.
As we’ve learned from Warren Buffett…
“A climate of fear is your friend when investing; a euphoric world is your enemy,”
“Be brave when others are afraid, and afraid when others are brave.”
Or, as we learned from Baron Rothschild,
“Buy when there’s blood in the streets, even if the blood is your own.”
Or, even as we’ve learned from George Soros,
“Markets are constantly in a state of uncertainty and flux and money is made by discounting the obvious and betting on the unexpected.”
Believing the Fed will not allow the bloodshed to continue much longer before elections, markets could begin to recover shortly.