Monday, January 28, 2013

Buy TBT (sell puts)

Buy TBT via selling Feb 63 puts @67.1

TBT is the double inverse treasury bond ETF. There is minor chart support at 63.5. If my puts come into play, the plan is to roll down and out. One negative to selling puts on TBT is the relatively large margin requirement, because it is a leveraged ETF.

Bonds have broken down. The seasonality for bonds remains negative (positive for TBT) until April. November to April tends to be the weaker six months of the year for bonds, and the other six months tend to be supportive for bonds.


Long EBAY GPS IWM LEN LGF MON PG TBT
Net long APC BA

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