Talk about a disaster… Not only has the snow wreaked havoc, but economic realities have, too, sending the Dow down more than 200 points on the day.
Our DIA puts should do very well if this fall continues, especially if the Dow tests its 200-day moving average near 17,240.
But who knows?! One day, we’re down 200. The next day, we’re up 200. It’s a tough call at such toppy market valuations.
We’re using today’s sell off to take some gains off the table today. If you’re pleased with current gains on DE, sell to close half of the position and hold the second half.
Also, the MAT March 27 put is slightly above break even. Sell to close today ahead of expiration this month.
Stay tuned for new trades shortly. Hold all open positions.
Ian L. Cooper
Inside Value Trader