TLT

Discussion in 'Options' started by oldnemesis, Aug 29, 2016.

  1. http://www.marketwatch.com/story/eu...yellens-rate-hike-message-sinks-in-2016-08-29

    http://www.marketwatch.com/story/he...ng-rule-footnoted-in-yellen-speech-2016-08-26

    Yellen wants to raise rates and is looking for reasons to do so.

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

    Trade
    With TLT at 139.46
    Jan 155/160 bear call spread for a net credit of $25
    Yield = 25/475 = 5.3% in 144 days or 13.3% annualized
    Prob = 90%

    Price............. Profit / Loss........ ROM %
    105.00................. 25.00............. 5.30%
    125.00................. 25.00............. 5.30%
    140.00................. 25.00............. 5.30%
    155.00................. 25.00............. 5.30%
    155.25................... 0.00............ 0.00%
    160.00................ (475.00)....... -94.70%
    166.00................ (475.00)....... -94.70%
    180.00................ (475.00)....... -94.70%
    200.00................ (475.00)....... -94.70%

    Filled at $25
     
    nudave likes this.
  2. TLT is awesome for strangles because you don;t have bullshit skew that SPX has.

    but at the same time, much less risky than commodity futures or stocks

    FB is great for selling puts
     
    Last edited: Aug 29, 2016
  3. Buy1Sell2

    Buy1Sell2

    Uptrend remains intact here. Buy an oversold condition.
     
  4. please don't post nonsense on my threads