Novice Trade: Treasury Bond ETF

Concerning interest rates, the last few months have been a bit of a pain. Despite the Fed raising rates, the back end of the curve has been stubbornly strong. The 10-year at 2.25% is cheaper than when we were in the middle of QE. It is astonishing that long-term bonds are this bid.

I think it's overdone and rates will have to pull back, so I am going to attempt to run head first into a concrete wall by buying longer-term puts in iShares 20+ Year Treasury Bond ETF (TLT) . September $125 puts are less than three bucks, not a bad price. I would also do a bear calendar spread, but for ease I like the simple put buy....8 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

Read the full story and get access to the Real Money Pro trading floor.

There’s no substitute for a trading floor to get great ideas, so Jim Cramer created a better one at Real Money and blogs there exclusively. We then added legendary hedge fund manager, Doug Kass, with his exclusive Daily Diary and best investing ideas. Staffed with more than 4 dozen investing pros, money managers, journalists and analysts, Real Money Pro gives you a flood of opinions, analysis and actionable trading advice found nowhere else, and allows you to interact directly with each expert.

Already a Subscriber? Please login.

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data provided by Interactive Data. Company fundamental data provided by Morningstar. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by Interactive Data Managed Solutions.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

IDC calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.