Well Puts

What a week. It always comes down so much faster than it goes up. You have to be willing to accept these draw-downs and be prepared to make trade adjustments as the markets warrant.

I made two adjustments this week to re-balance my inventory and avoid too many assignments. I like to spread these adjustments out over time in case the market can find support. I only want to make the adjustment if it is absolutely necessary.

On 1/27 I rolled the IAMGOLD Corp. (IAG) puts I wrote forward and down to March 12.50. I decided to take a loss on this as it was breaking down so quickly and the next support was in the 12.50-13.00 area which will also be the 200-day MA.

IAG-Daily

On 1/29 I rolled the SmartHeat (HEAT) puts forward to March and down to the 10 strike. I took a small loss on the HEAT adjustment. There is trendline support near 10.80.

HEAT-Daily

Sell to open IAG Feb 15 puts. My order filled late afternoon. IAG is back above the 50 and 100 day SMA. Support at $15 gives me some cushion.

IAG Daily