NEW DIRECTIONAL PUT PLAYS
SPDR DJIA ETF - DIA - close 108.56 change +0.37 stop 110.55
SPDR Dow Jones Industrial Average ETF Trust, formerly Diamonds Trust, Series 1 (the Trust) is a unit investment, which issues securities called trust units or units. It seeks to provide investment results that, before expenses, generally correspond to the price and yields performance of the Dow Jones Industrial Average. The Dow Jones Industrial Average is an Index of 30 blue chip United States stocks.
Target(s): 106.55, 105.40
Key Support/Resistance Areas: 112.00, 110.00, 107.30, 106.40, 105.00
Time Frame: 1 to 3 weeks
Why We Like It:
Stocks have been flowing into large caps and I believe they are due for a decline after the quarter ends which is Thursday. I also think the broader markets may see a false breakout tomorrow which will head fake late comers to the party into long positions. I suggest readers enter long positions if DIA trades to $109.20, which is near the highs DIA printed after the flash crash before the DJIA plunged more than -1,000 points. If triggered, our profit targets on options positions are +50% to +75%.
Suggested Position: Buy November $105.00 PUT, current ask $1.97, estimated ask at entry $1.70
Entry on September xx
Earnings: N/A (unconfirmed)
Average Daily Volume: 6.5 million
Listed on September 25, 2010