DIA moved down to $117 when my speculative sold option expired. The result is assignment of 100 shares of DIA at $120. My net cost basis for DIA is further reduced by option premium received on the puts sold.
The next phase is to STO DIA Call with strike price at least $120 or any other variation that will give roughly the same cost basis if the option got called. This will further reduce DIA cost basis while waiting for DIA to bouce back.
I added extra protective put on DIA at $121, though buying 2 contracts of DIA Dec11 121 Put.
It seems that DIA Put strike price is too close to the asset price, making the protection less effective. More deep ITM put will protect more, but it’ll also cost more to purchase.