December 17, 2013 - MDT - 30 yr Bonds & TBT Trade Alert

While the Diary of a Mad Hedge Fund Trader focuses on investment over a one week to six-month time frame, Mad Day Trader, provided by Jim Parker, will exploit money-making opportunities over a brief ten minute to three day window. It is ideally suited for day traders, but can also be used by long-term investors to improve market timing for entry and exit points.

This is a 5% portfolio weighting.

?USH....Buy the January 2014 128 Puts expiring 12/27/13 for 22 ticks or better.

TBT...Buy the December 81 Calls expiring 12/27/13? Place the order mid market...they're trading 42/45 cents offered

It's that time of the day. We've just had a big European puke? of Long Equity Exposure?.

Pick one vehicle or the other. Don't do both.

Futures traders...you want the Puts on by the Pit close today.

I do not wish to be big in this trade, however I'm willing to throw away half the premium to see if we can get a good reward.

I'm looking for a low risk way to be short the Bonds into tomorrow afternoon's Fed minutes and Uncle Ben's testimony.

The Options are cheap enough that if we're wrong we'll sell them out and at least get some of the premium back.

I'm looking at this as a little lotto play so I'm not going to do a spread to mitigate the margin outlay.

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