Rolling our TLT put contracts to a higher strike price.
Long-term bond yields fell today. Investors are less worried about long-term inflation. But as the economy recovers shortages and labor costs will continue to drive inflation higher. That argues for higher interest rates and a drop for TLT.
Rolling our put contracts lets us buy more intrinsic value at a discount, and sets us up for better profits when TLT moves in our favor.
- Selling (to close) the TLT November 19th $148 Puts
- Buying (to open) the PTON November 19th $152 Puts
- Limit: DEBIT of $2.80 or less
- The new position will represent roughly 5.1% of our Spec Model capital
- 12:39 Executed
- Sold TLT Nov 19th $148 Puts @ $2.53
- Bot TLT Nov 19th $152 Puts @ $5.33
- Net Debit: $2.80