Wednesday, March 03, 2010

Buy TLT (sell puts)

Buy TLT via selling Apr 86 puts, TLT @ 91 even. The March puts that I am short are nearing delta zero, so I am opening up an April position. ThinkorSwim indicates a 12% chance of exercise on the TLT Apr 86 puts. As has been mostly the case, this is another low risk, low reward, high probability trade (88% chance if held until expiration).

Long GLD, TLT
net short SPY

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