Trade Alert - (TLT) April 1, 2025 - TAKE PROFITS

When John identifies a strategic exit point, he will send you an alert with specific trade information as to what security to sell, when to sell it, and at what price. Most often, it will be to TAKE PROFITS, but, on rare occasions, it will be to exercise a STOP LOSS at a predetermined price to adhere to strict risk management discipline.

Trade Alert - (TLT) – TAKE PROFITS

SELL the iShares Barclays 20+ Year Treasury Bond Fund (TLT) April 2025 $84-$7 in-the-money vertical Bull Call debit spread at $2.97 or best

Closing Trade

4-1-2025

expiration date: April 17, 2025

Portfolio weighting: 10%

Number of Contracts = 40 contracts

I think there is a chance that we may get a RISK ON short covering rally with the release of wide-ranging tariffs against the rest of the world tomorrow. The (TLT) is my last risk-off position and I still have three longs. “I don’t know” is not the basis for placing big bets.

In any case, we already have 92.5% of the maximum potential profit in hand. The risk/reward of continuing for 12 more trading days is not favorable. We are also at the top of a one-month trading range.

As a result, you get to take home $1,480, or 14,23% in 12 trading days. Well done and on to the next trade.

I am therefore selling the iShares Barclays 20+ Year Treasury Bond Fund (TLT) April 2025 $84-$87 in-the-money vertical Bull Call debit spread at $2.97 or best.

The only way to lose money on this position is if the US economy absolutely catches on fire and sends interest rates soaring in the next months. As we are on the verge of a possible soft landing, I highly doubt this is going to happen.

This was a bet that the (TLT) would not fall below $87.00 by the April 17 option expiration in 24 trading days.

Here are the specific trades you need to exit this position:

Sell 40 April 2025 (TLT) $84 calls at………….……….....................$7.80

Buy to cover short 40 April 2025 (TLT) $87 calls at…………........$4.83

Net Proceeds:………………………….………..………….…......................$2.97

Profit: $2.97 - $2.60 = $0.37

(40 X 100 X $0.37) = $1,480, or 14.23% in 12 trading days.

It’s now the Opening Act for the Bond Market

If you are uncertain about how to execute an options spread, please watch my training video by clicking here.

The best execution can be had by placing your bid for the entire spread in the middle market and waiting for the market to come to you. The difference between the bid and the offer on these deep-in-the-money spread trades can be enormous.

Don’t execute the legs individually or you will end up losing much of your profit. Spread pricing can be very volatile on expiration months farther out.

Keep in mind that these are ballpark prices at best. After the alerts go out, prices can be all over the map.

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