Editors Note:

Our DIA puts expired because we ran out of time. I am convinced there is a significant dip in our future.


DIA - Dow SPDR ETF - ETF Profile

The SPDR Dow Jones Industrial Average ETF Trust seeks to provide investment results that, before expenses, correspond generally to the price and yield performance of the Dow Jones Industrial Average. The DJIA is the oldest continuous barometer of the U.S. stock market, and the most widely quoted indicator of U.S. stock market activity.

I am going to make this as simple as possible. The Dow is still extremely overbought. It is due for a rest. The earnings cycle is over. Post earnings depression is here. The short squeeze is likely to fail. The tax plan faces an uphill battle and January could see a major market decline. It has been over 500 days since the market had a 5% decline and we average twice a year. We are due.

This is highly speculative. I am using March options because I want to have as much time as possible for this scenario to play out.

Buy March $230 put, currently $5.15, no initial stop loss.
Sell short March $210 put, currently $1.54, no initial stop loss.
Net debit $3.61.


No New Bearish Plays