Writing SmartHeat Inc. (HEAT) Puts
January 4th, 2010
Sell to open HEAT February 12.50 puts.
SmartHeat, Inc. engages in the manufacture and sale of plate heat exchangers (PHEs) and packages, thermometer testing devices, and heat usage calculators in the People’s Republic of China.
I mentioned the other day that HEAT was on my watch-list. I was planning on more of a pullback before making this trade but this morning’s action made me enter the trade.
HEAT pulled back to the 38.2% retracement level on an hourly chart and has a rising 50 and 100 day SMA. I decided to go with the $12.50 strike which is also pretty solid support on the daily chart.
HEAT Daily