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Wolf Option Trading
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I started trading back in the mid 90's while in junior high school and high school. My focus in college was on investment analysis. I have traded since the mid 90's with quite a few failures until I discovered how option trading could help me. I learned the lessons the hard way about options in... More
  • TLT OTM $109-110 $109-$110 Sept Trades 0 comments
    Aug 25, 2010 9:30 PM | about stocks: TLT
    Just wanted to post an update today to the trade due to the not unknown move down in treasury rates.  The spike this morning in TLT to the mid $109's was interest but started to reverse even though the equity market remained down.  This is interesting as it might show a sign of sentiment that the long-term yields were not going to be much more acceptable at sub 2.50% level based on the current information known in the market place.

    Claims numbers tomorrow may entirely throw a monkey wrench into the slight gains in the equity market today.  However, unless it is entirely shocking it may be a level at which to add to positions.

    I did not adjust my positions per my original posting or add to it.  I was busying closing out some put spreads on a few individual equity names and watching natural gas saying goodbye to the $4 prompt handle to be looking at all of the TLT options carefully.

    If I missed the opportunity, its ok I am still just fine with my original structure and the profits it would generate as well as the original intent to roll down the short $109 strikes to eventually $108's, $107's if an increase in interest rates occured.

    I still wouldnt recommend being aggressive with TLT on the bearish side but dont see any real reason to be bullish on TLT over a longer term time horizon.




    Disclosure: $109-$110 Sept bear call spreads, $109-$111 Sept bear call spreads in TLT
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