converting long calls to more bullish spreads

Discussion in 'Options' started by rjjaz, Jul 9, 2015.


  1. All of the above. Or none of the above... or some of the above. It depends.

    Every morning when I get up I review all the news. Then I review my portfolio and then I review the news again.

    e.g.

    Today Janet Yellen said again she was going to raise rates.

    http://www.marketwatch.com/story/yellen-says-a-rate-hike-likely-to-be-needed-this-year-2015-07-10

    Well she's been saying this for a while. Janet doesn't look like a broad I'd pay much attention to so I have been taking a wait and see attitude. I have been holding a spread in TLT that has a good deal of profit in it that I don't want to lose. TLT took a dip on Yellen's insistence she was going to raise rates:

    http://stockcharts.com/h-sc/ui?s=tlt

    This means to me that people are beginning to believe Janet so I closed my TLT position and locked in my profit.

    Other days, other realities, evolving portfolio: different decisions.
     
    #21     Jul 10, 2015
  2. xandman

    xandman

    I am confused as to why the market didn't react negatively. Futures had priced no hike until next year.
     
    #22     Jul 10, 2015
  3. Maybe they didn't.
     
    #23     Jul 10, 2015
  4. i960

    i960

    Or maybe the market believes it to be momma Yellen BS or cannot focus on more than one thing at a time.
     
    #24     Jul 11, 2015