This morning's market decline has now spread across all indices as the Nasdaq 100 has fallen into negative territory, following the Dow (-400 pts), the S&P and Russell. We want to begin exposure to September puts today and do so before much more damage is done. Although the Intermediate Term option portfolio is holding July 16th SPY puts, those are too far out of the money with too little time left on them to rely upon to capture the extent of the move that is coming. Sell Signal: SPY on any decline today below 430.50 - today's low (SPY currently 431.00) Option: Sep 17th $415P (currently 7.00) Aggressive Traders: Aug 17th $415P (currently 5.00) Note: We are looking for time more than price on this position. An Intermediate Term leg down will take SPY below $400. How long it takes to get there is the great unknown.
