In december 2008, I wrote in a thread here and RFT's financialtraders blog, that we were in a short term top on bonds (every top starts short term, and then...). A way to play it was to long TBT. TBT is now at 48.19 as of this friday TBT was then in the 36 area. It was the absolute bottom on TBT. Current profits: $12 or 33%! If TBT breaks on the way up I do not expect it to go beyound $54. The most important scenario is that it may fall starting this week (March 1). I just prepared a post on RFT financial traders blog, in which I indicate that I would either bank my profits, or watch carefully the price this week. It is at a potential turning point! As soon as the top is confirmed, I will post here and on the blog. We are watching it like hawks. Your views? PS: do not confuse what I just wrote. I am not focused on shorting TBT/longing TLT, I am focused on securing profits .
Then just sell some TBT calls to purchase some TBT puts. think of it as a built in stop loss to capitalize a little extra bit.