Buying TLT call contracts.

Bond yields appear to be in the process of peaking.

The Fed has been aggressively raising short-term interest rates to slow the economy, and rates for long-term bonds have also moved sharply higher.

At this point, signs are pointing to an economic slowdown.

This has caused certain Fed members to begin talking about a shift in policy. Which in turn could cause long-term yields to drop.

The iShares 20+ year Treasury ETF (TLT) is a proxy for long-term bond prices. Any shift in Fed policy should drive TLT sharply higher.

Considering how oversold bond prices have become, a bear market rebound could be swift and cover a lot of ground.

Buying TLT call contracts gives us a chance to participate if long-term yields pull back.

And our in-the-money call contracts also help to manage our risk if bond yields push higher before rolling over.

• Buy (to open) 15 TLT November 18th $87 Calls
• Limit $7.00 or less
• The new position will represent roughly 8.6% of our Spec Model capital

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• Executed 10:14
• BOT 15 TLT Nov 18 $87 Calls @ $6.61