Monday, July 27, 2009

Follow up to the Diamonds (DIA)

Totally Profitable, enough said!

There was some significant 80 and 92 strike put spreads (Aug-Dec) brought last week on the SPY the S&P 500 ETF. By significant I mean 100's of thousands of contracts. A pretty bearish bet over the next 4-months. I think the fundamentals obviously point to a pullback at some point, we are overbought and touching the top band of the bollingers on the $INDU.

The timing is key now. For the Diamonds some Aug 88 puts might be good. Spread it out and pick up some Sept 85's as well.

Happy trading...

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