Just yesterday, we exited half of the DIA March 176 put for solid, quick gains of up to 49%. Today, the put is up to $6.65, moving higher as the Dow pulls back another 100 points. Hold.
Unfortunately for the bulls, there’s not much to get excited about. Oil and related names are still plunging. Global markets are getting crushed. There’s a lot of fear out there. Unless the major indices can hold their 50-day moving averages, or prior support levels, they could retest 200-day moving averages.
While I’m recommending that you hold the second half of the DIA put, consider buying to open the QQQ March 2015 98 put up to $3.25. This will give us exposure to NASDAQ downside, too.
Ian L. Cooper
Forgotten Profits