I think people have yet to realize how powerful TLT is here. For instance where i live one dollar is equal to c$21 Cordoba. This purchasing power is pretty powerful. Me and my wife live off about $1000 dollars per a month. With the dollar increasing in value and the $4.00 dollar dividend yield it makes this Fund very attractive.
When TLT looks over valued i will sell it and buy Oil, Gold, and Silver. This will be fairly obvious when the time is right
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You might consider selling some puts on TLT here. For example, the Mar. 19 expiry 89 strike is paying 1.20, the 91 strike fetches 2.45.
ReplyDeleteOne month to expiration means time works hard in your favor and if you get put to, the basis would be 87.80 and 88.55 respectively.
Good luck!
That would have been an excellent trade. If TLT gets any more depressed i will act on this instead of buying more shares. If they put TLT to me at $87 i will be happy to buy it.
ReplyDeleteGreat idea thanks
Yes, I tried to post it up before the close for you but I was a bit tardy in coming up with it myself. The pullback was overdone I believe on Hoenig's (Fed governor) tightening comments and points like that command a nice premium. What I may suggest is to keep a "cheat sheet" of possible trades, such as if gold shoots up, drops down, bonds up, down; a certain equity up, down; and what option plays might be favorable in each situation.
ReplyDeleteSometimes when the action is coming hard and fast it's difficult to remember what the most opportune trades might be and I think this would help us to focus.
The next one I have in my sights is selling puts on GDX if we have a washout to the mid-upper 30's that looks like capitulation. That's another I wouldn't mind owning cheaply.
Always more opportunities to come...!