Last night, I recommended that you consider exiting just half of the DIA November 174 put for solid gains. This option last traded around $10.65. I’m now recommending that you exit the second half of the put option here to secure even more gains.
I’m also recommending that you sell to close the second half of the DIA November 177 put for triple digit gains.
I believe we are now over-extended to the downside, and overdue for at least a dead cat bounce. Without risking too much (2-5 contracts at most), consider buying to open a VXX October 2015 19 put up to $3.
This trade carries a great deal of risk. Do no risk much on it. I just believe – given technical reads – that we could see a near-term reversal in the markets.
Also, sell to close the Facebook (FB) September 92.50 put for gains.
Hold all other open positions.
Stay safe out there.
Ian L. Cooper
Forgotten Profits