Rolling our TLT put contracts to a higher strike price.

After breaking down this month (bonds trade lower as interest rates rise), TLT has bounced. This looks like a short-term rebound and I expect TLT to continue to fall as long-term interest rates move higher.

Rolling our put contracts lets us buy more intrinsic value at a discount, and sets us up for better profits when TLT trades lower.

• Selling (to close) the TLT February 18th $145 Puts
• Buying (to open) the TLT February 18th $150 Puts
• Limit: DEBIT of $3.90 or less
• The new position will represent roughly 8.6% of our Spec Model capital
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• 10:41 Adjustment
• Changing the limit to $4.05 as bonds start to pull back.
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• 10:53 Executed
• Sold TLT Feb 18th $145 Puts @ $3.75
• Bot TLT Feb 18th $150 Puts @ $7.80
• Net Debit $4.05