What a way to start the year…
The Dow is down 447 on the day, as China concerns reemerge. Unless, October 2015 support holds on the Dow, we could watch as the index sinks to 16,000.
Just be cautious…
One way to trade it is by buying to open the DIA March 2016 164 put up to $4.50.
Fortunately, there is some good news. Our oil put trades are paying off quite well this morning. On December 24, we recommended buying the XOM March 77.50 put, the February 77.50 put, and the CVX February 90 put.
As we speak, each is up more than 35% on today’s downfall.
Sell to close half of each to secure gains.
Happy New Year to you and your families…
Ian L. Cooper
Rapid Retirement System