TLT

O

oldnemesis

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
 
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
 
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