Buy OTM puts, grab as many 10yr T-Note futures as you can

N

Nighthawk

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Fasten your seat belts, go golfing - come back March 2024.
 
can you explain the trade in a bit more detail. i see a 5h chart with the t-note futures breaking lower support. so this means rates are going to spike. therefore the first part of the trade is short the entire market by buying OTM puts. but the second part of the trade, go long tyz3 is less clear to me.
 
This is a good example of counter-trend trading.

This is also a good example of taking a trade without proper/clear confirmation.

Who knows, when you come back in Mar 2024, you will be a multi-million dollar man due to counter-trend trading.
 
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Be careful out there. Even seasoned treasuries traders are quite perplexed some days by the recent moves in this complex. Yesterday was a great example of a much stronger than expected reaction to the questionable retail sales in the US.

Also two supply/demand factors at play. Increasing supply with the issuance of new treasuries lately, and some countries starting to liquidate their stash, also increasing supply. Today I noted that the 10 year dropped below the key price level of 106 as well.

Remember also that there are two CME 10 year treasuries, the standard, which symbol is ZN, and the Ultra, symbol TN, and way less liquid, including its options. Those options are not even available on some brokers due to their lower liquidity. Also, the margin is far more expensive than the standard ZN.

If you wish to use an ETF, IEF by iShares is a good one, volume today already over 5 million as I write.
 
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Taking some of the futures profits and RE-INVEST INTO ATM put options as a complete DELTA HEDGE.

And now, where is my golf bag? Coming back in March 2024!
 
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