Back in January 2010, I sold 4 contracts on DDM July 17 $48 strikes on the premise that the Dow would take a hit by summer. Well summer is almost here and the Dow has tanked. I bought back my 4 DDM contracts for $0.35 today after selling them in January for $3.20. If this is some type of market correction then we may get a pop in a few weeks and I’ll sell some contracts on DDM for October. The $48 strikes for Oct 2010 are currently selling for about $2.00 and if the market pops it will likely venture back up to $3. If I can do this a couple of times, I will eventually either break even or make some additional profits.
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