The back story: Thursday was another example of why you are patient and just wait for your pitch when your go-to set-ups aren’t happening. The market showed me nothing pre-market, my core trades weren’t there at the right prices.

Shortly after the market opened, however, I got members into SPDR Standard & Poors 500 ETF (SPY) Sept. 29 $249 puts. It looked like – and turned out to be – a great way to turn a red day on the market into a profitable day for me and my members; I made $1,450 in the first hour of the day (and members reported gains of between $100 and $1,000).

The set-up: We have the same kind of market today, and traders know that it’s okay to go back to the well for more when the conditions are the same and, therefore, promising to deliver the same results. No one should be scared of red markets here; there’s money to be made to the downside, whether it’s playing with puts or buying the dips right now.

The trade:  Right back into SPY Sept. 29 $249 puts, provided that the 10 exponential moving average crosses the 20 exponential moving average to the downside on a 5-minute SPY chart. That kind of trade is my bread and butter.

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Davis Martin is the head trader at Dailyprofitmachine.com. He trades SPY calls and puts and swing trades individual stocks and stock options. At the time this article was published on RagingBull.com, he had no shares, options or open orders in SPY, but was watching 9/29 $249 puts for a possible trade on Friday as described in this commentary. He last traded those puts on Thursday, for a profit.

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