I bought Sept 33 put options for 1.57 this morning on Morgan Stanley, symbol MS.
The set-up here is a dual time frame overbought at a slightly lower high compared to the last weekly over bought stochastics peak. Daily time frame is showing strong bearish divergence and a shooting star reversal candlestick.
Also the VIX is showing a cluster of low readings with a couple closes below the lower bollinger band. Based on my analysis of real money market sentiment and price, I view this current phase of the market to be a continuing bearish divergence that is probably very mature and likely to turn into a significant price decline for the time frame of this trade, even if for only 1-2 weeks.
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