Selling our TLT call contracts.

Bond prices have moved steadily higher over the last few weeks as long-term interest rates have pulled back.

At this point, bonds are no longer oversold and it is more difficult to project which way interest rates (and bond prices) will head. The “easy money” has been made for this trade and TLT is now close to a long-term resistance level.

I prefer to lock in our profits today, but will keep TLT on my radar. We may have an opportunity to re-enter a position if bonds pull back over the next few weeks.

By selling these call contracts, we’re locking in profits and freeing up cash that can be used for other opportunities that are working well in today’s market.

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