I have traded in the TLT ETF for a number of years. This is the 20 year plus Bond ETF from iShares. My present trade is set to expire Sept 2 although I will probably close it as early as Friday of this week or early next week if I can get it closed for under 10 cents. The return was 6% for a little more than a week. You can review that trade here.
Tonight a question from Daniel wondering about a strangle trade on TLT needs a reply.
Investor Question on TLT ETF
“Hi Teddi, are you confident that TLT will continue to hold the $138 level? Even if there are hawkish remarks on Friday? Also Treasury rates are insanely low. Do you think there’s much upside this year for TLT? I’m considering a short strangle. Daniel.”
Does Daniel’s trade idea have any merit? Could it be quite profitable and if so would a strangle be the way to enter this type of trade. What could be the outcome and how could the capital in use be protected as much as possible against loss. This article looks at his question and outlines some answers…
The rest of this trade idea article in the TLT Bond ETF is for Members.
TLT Bond ETF – Investor Trade Idea for Aug 24 2016
Members can sign in to the full members site here
Non-members can join here or review the benefits of a membership
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