A Case for a Downside Trade on the TLT
I have been avoiding the long-term thesis of shorting the iShares Barclays 20+ Year US Treasury Bond Fund (TLT), but one pattern does have me trading it in the short term to the downside, and that is the Bollinger bands.
With the push higher this morning, we have the potential setup for such a trade. If TLT were to hit $129.52, then it looks like a trading short. The most aggressive traders would be looking toward the weekly July 131 or 130 puts, while slightly less aggressive traders would want to consider the monthly expiration trade of July 131-129 put spreads or just July 20 $131 puts. I would stay in-the-money on the puts and prefer put spreads if I were going beyond a trade for tomorrow....282 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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