We were not looking when the previous option trade expired, if it already has. So here is another one. Try to buy the 585 Sept. put at $4. The c wave of this a-b-c which is a minimum structure should take the SOX down to about $560, the low point of the triangle. The option should have an intrinsic value of $25 plus some time left in it if this scenario pans out.
There is a very good opportunity for some drama this week. We have the Fed. fest in Jackson, Jackson Hole, Wyoming attended by both Yellen and Draghi plus a whole host of other academics that are pretending to understand the World. Forget about Ukraine, Isreal , Syria, the US interior and all those other hot spots. The real action will be in the wind swept plains of Wyoming and one slight or misstep could create untold havoc to the economies of the world. But don’t forget Mark Twain’s wise word, something like this “There are two times in a man’s life that he should not speculate, when he does not have the money and when he does”. When it comes to options I always add that you should only do the winning trades and leave the others alone. Good luck.
As a reminder, we show the “big picture” once again below;