OptionsHouse

Options Trading News

April 12, 2013  Fri 2:45 AM CT

TLT: SEE CHART GET CHAIN FIND STRATEGIES
An enormous trade is looking for the TLT Treasury exchange-traded fund to fall in the next week.

More than 30,000 each of the April 118 and 117 puts traded in the iShares Barclays 20+ Year Treasury Bond Fund yesterday. The 118 puts were bought for the ask price of $0.22 and the 117 puts sold for $0.13 in prints of 21,308 each.

This bearish vertical spread cost the trader $0.09 to open, which is the amount at risk if shares remain above $118. The maximum potential gain is $0.91 if the TLT falls below $117 by expiration a week from today. (See our Education section)

The TLT was up fractionally yesterday, closing at $120.14. It was above $123 last Friday but below $117 two weeks ago.

More than 105,000 TLT options changed hands overall yesterday, compared to a daily average of 34,000 in the last month. Puts outpaced calls almost 4 to 1, a reflection of the session's bearish sentiment.
Share this article with your friends


Invest Like a Monster - Las Vegas: March 13-14

TRADING WEEKLY OPTIONS

The fastest money in the market
View full report »

Premium Services

Webinar Recording

Turbo Charge Your Trading Profits

Education & Strategy

Gamma

As we continue to discuss the Greeks, we come to the first of the strike based Greeks called Gamma. Gamma is known as the second derivative, while delta is the first.

View more education articles »