I like these trades on the Dow---using ticker symbol DIA. I haven't heard from Molly in the past few days. I heard she was traveling. However, I thought I'd weigh in on a few potential exit strategies.
Reminder: Molly played straight options on the whole market---at least the Dow. She bought call options on the DIA---and ETF, or Exchange Traded Fund. This ETF is a stock with $1 incremental strike prices. The stock trades at 1/100 of the Dow, plus a few pennies. For example, if the DOW is going for 11,240, DIA stock will be at $112.42. You can buy puts or calls; you can do spreads; and you can own the stock and write covered calls.
Simply put, it's a way to trade the whole Dow, which again, I think is the most widely followed Index in the world. I also think the whole market is in a rolling pattern. Why? Because it's range-bound. It has pretty solid support on the downside and pretty stable resistance on the top-side.
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