Learn the trade here. Make it on tradeMONSTER

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


Related Stories

TLT

Treasury fund gets big bullish bet

September 24, 2014

A large bullish trade is looking for the iShares 20+ Year Treasury Bond Fund to return to ites highs of a month ago.

TLT

Bearish play targets Treasury fund

September 2, 2014

The iShares 20+ Year Treasury Bond Fund has been trending higher since the end of 2013 and reached 52-week highs at the end of last week.

Premium Services

Free Webinars

How Can Equity Traders Beat the Algos

Education & Strategy

When to go in or out of the money

Some of our subscribers recently asked how to gauge positions that are in or out of the money, so I...

View more education articles »
optionMONSTER stockMONSTER tradeMONSTER