Bonds, reversing
- Thread starter arkadyka
- Start date
thanks for the input.
That's basically how I interpreted today's action.
I didn't close the trade. Actually thought about pressing it w. some April puts, or possibly a bear call spread. But the action stayed steady & I just went to lunch and let it go. Moved on to other things.
I'll keep the bond short tho for tomorrow's action.
you betting on the pause?
How exactly do the fed funds futes work?
I'm not familiar w. them.
fed funds work easy - basically very similar to EuroDollars. the product settles at 1 minus FF at the end of the expiry month. FF is effective fed fund rate maintained by the federal reserve (usually very close to the target). Similarly to ED they consistently underestimate the possibility of hikes (or exaggerate possibility of cuts recently - that's at least my hope).
Check CBOT website for more details. . I will reinitiate my shorts in bonds - but not just yet.
Check CBOT website for more details. . I will reinitiate my shorts in bonds - but not just yet.
sounds cool.
yeh today didn't do me good either.
I did go ahead & sell the January 07 90 puts to make it a credit spread. Got that all together just before pause time
Still thinking I might buy those back in short order for a bit of a discount on my original put position, and go back to betting on the bond tankage.
But right now I'm long TLT effectively.
Quote from dr_sean:
sounds cool.
yeh today didn't do me good either.
I did go ahead & sell the January 07 91 puts to make it a credit spread. Got that all together just before pause time
Still thinking I might buy those back in short order for a bit of a discount on my original put position, and go back to betting on the bond tankage.
But right now I'm long TLT effectively.
Just FYI, did end up covering those puts quickly & bought a few extra to scale in my bet.
BTW my original post says I sold the 90 puts when I sold the 91 puts. I'm long the 90 puts. Sorry for the confusion. {
}Okay drop bonds! Looking good for that today.