Rolling our TLT put contracts to a higher strike price.
After breaking down this month (bonds trade lower as interest rates rise), TLT has bounced. This looks like a short-term rebound and I expect TLT to continue to fall as long-term interest rates move higher.
Rolling our put contracts lets us buy more intrinsic value at a discount, and sets us up for better profits when TLT trades lower.
- Selling (to close) the TLT February 18th $145 Puts
- Buying (to open) the TLT February 18th $150 Puts
- Limit: DEBIT of $3.90 or less
- The new position will represent roughly 8.6% of our Spec Model capital
- 10:41 Adjustment
- Changing the limit to $4.05 as bonds start to pull back.
- 10:53 Executed
- Sold TLT Feb 18th $145 Puts @ $3.75
- Bot TLT Feb 18th $150 Puts @ $7.80
- Net Debit $4.05