The last two days proved to provide significant movements in the diamonds allowing over 60% returns in a few hours. Having set buy limits from the opening price of the 102 DIA PUTS and sell limits at your profit point would have executed flawlessly both Thursday and Friday. The market likes the good news pre-market raises the futures, drives the market up within the 30-minutes opening trend and then lately as earnings are meeting or missing and revenues fall short throughout the day the market gives back all it's gains and then some. 102 PUTS could have been had at 1.75 limit and sold at 2.75 today. This is another way to make money in today's schizo market, am I up, am I down, am I up, am I down...
I chose the Put over Call strategy because I have a short-term bearish outlook. We'll see what next week brings with the companies on tap to provide earnings...
Happy trading.
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