Futures now at 125'255. Top so far is 126'08. Trade is going well. My wishes is for the support at 125'25 and then 125'17 to be taken. After that point it is a "clearer" sailing.
TJ Sir Galahad Out
Who are the idiots buying bonds for 1% interest?
- Thread starter misterno
- Start date
Futures now at 125'255. Top so far is 126'08. Trade is going well. My wishes is for the support at 125'25 and then 125'17 to be taken. After that point it is a "clearer" sailing.
TJ Sir Galahad Out
Arbitrarily picking today to short bonds? And in the face of the macro view?
Lol.
Anywho, enough other people handled the OP's question.
Lol.
Anywho, enough other people handled the OP's question.
No, it is not arbitrarily. I use timing models.
Quote from tradingjournals:
Futures now at 125'255. Top so far is 126'08. Trade is going well. My wishes is for the support at 125'25 and then 125'17 to be taken. After that point it is a "clearer" sailing.
TJ Sir Galahad Out
Market is now at 125'19. For today I want to see the market trade at 125'17 and below.
I think I should cover at 125'18 and wait for the break of 125'17 to re-enter.
Congrats! We were one of the few facing a crowd that thought we were insane.
I am not a bond trader, but I got interested recently. Are there options on the 2s? Any premium on the calls?
Quote from tradingjournals:
Congrats! We were one of the few facing a crowd that thought we were insane.
I am not a bond trader, but I got interested recently. Are there options on the 2s? Any premium on the calls?
There are options on the futures for the 2s. I haven't looked at them though - I'm kind of allergic to options
I'm not really a bond trader either, but I figured it was about time for my one fundamentals trade of the year. It's nice my timing was good, but it was just a fluke and a finger in the wind about sentiment.
Quote from The Big D:
There are options on the futures for the 2s. I haven't looked at them though - I'm kind of allergic to options
I'm not really a bond trader either, but I figured it was about time for my one fundamentals trade of the year. It's nice my timing was good, but it was just a fluke and a finger in the wind about sentiment.
I just located the option chain of ZT futures. They seem to be very illiquid. With regard to options in general, you may want to look at them from the perspective of a seller. Some traders use them as sources of potential profits.
One thing that bothers me about these short bonds is the cost of carry. I hate it. I think in the future I will sell calls instead to play the down side, so I would not pay explicit cost of carry and/or cover it with theta premium.
I've looked at options. Their nature seems to be too much in the vein of "one of us is going to blow up" for my liking. So I generally avoid them. Occasionally I purchase them for hedging purposes. But I've never liked them as synthetic longs or shorts.
The carry doesn't worry me - perhaps because it's a fundamentals trade. My whole thesis is that the rate is way too low. So I should be plenty happy to pony up and pay that rate. If the carry problem gets worse, that means I made money.
Good luck, gents... May the Force be with you!