Sell TLT strangles TLT@126.7
Sell Aug 115 puts and Aug 138 calls
/edited for typo, Aug 138 calls sold
TLT is the 20 year U.S. Treasury ETF. Selling strangles is a bet on a trading range. There is a good base of support at 115, mild resistance at the recent highs of 130. Operation twist is still distorting the U.S. bond market.
Elsewhere, gold stabilized after I exited, but I had little way of knowing that. Today, I look at selling put backratios on SPY, but August premiums seem modest given the recent market volatility.
Long ALXN, BRKB, EWG, LGF
Net neutral IWM, SPY, TLT