• support@madhedgefundtrader.com
  • Member Login
Mad Hedge Fund Trader
  • Home
  • About
  • Store
  • Luncheons
  • Testimonials
  • Contact Us
  • Click to open the search input field Click to open the search input field Search
  • Menu Menu

Trade Alert - (TLT) December 1, 2022 - TAKE PROFITS - SELL

Trade Alert

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.


Alert

 

Trade Alert - (TLT) – TAKE PROFITS

SELL the iShares Barclays 20+ Year Treasury Bond Fund (TLT) December 2022 $92-$95 in-the-money vertical Bull Call spread at $2.96 or best

Closing Trade

12-1-2022

expiration date: December 16, 2022

Portfolio weighting: 10%

Number of Contracts = 40 contracts

We have caught an absolutely ballistic $13 move up in the (TLT) and it’s time to ring the cash register.

With only four cents left in this trade over 10 trading days and 90.00% of the maximum potential profit in hand, the risk/reward is no longer favorable.

I am therefore selling the iShares Barclays 20+ Year Treasury Bond Fund (TLT) December 2022 $92-$95 in-the-money vertical Bull Call spread at $2.96 or best.

As a result, you get to take home $1,440, or 13.46% in 10 trading days. Well done, and on to the next trade.

The fabulous CPI report ten days ago, taking the inflation rate down from 8.7% to 7.7% in one fell swoop, has completely turned the bond market around.

In a heartbeat, we went from super bear to hyper bull.

The reasons are very simple.

*Ultra-high interest rates will force a mild recession in early 2023.

*Then suddenly, inflation will plummet.

*We know this has already started because the largest element in the inflation calculation is housing costs, which are in free fall.

*The Fed will panic and deliver 2023 the sharpest DECLINE in interest rates in American history.

Kaching!

If you think I’m out of my mind, just look at the top performers of the historic stock market rally last week, many of which were across the fixed income space.

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 month. As we are on the verge of a possible mild recession, I highly doubt this is going to happen.

This was a bet that the (TLT) would not fall below $95.00 by the December 16 options expiration in 19 trading days.

Here are the specific trades you need to close out this position:

Sell 40 December 2022 (TLT) $92 calls at………….......………$12.50

Buy to cover short 40 December 2022 (TLT) $95 calls at……$9.54

Net Proceeds:………………………….……….….................….….....$2.96

Profit: $2.96 - $2.60 = $0.36

(40 X 100 X $0.36) = $1,440 or 13.46% in 10 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.

 

Share this entry
  • Share on Facebook
  • Share on X
  • Share on WhatsApp
  • Share on Pinterest
  • Share on LinkedIn
  • Share by Mail
https://www.madhedgefundtrader.com/wp-content/uploads/2016/02/Alert-e1457452190575.jpg 135 150 Mad Hedge Fund Trader https://madhedgefundtrader.com/wp-content/uploads/2019/05/cropped-mad-hedge-logo-transparent-192x192_f9578834168ba24df3eb53916a12c882.png Mad Hedge Fund Trader2022-12-01 12:39:292022-12-01 12:39:29Trade Alert - (TLT) December 1, 2022 - TAKE PROFITS - SELL

tastytrade, Inc. (“tastytrade”) has entered into a Marketing Agreement with Mad Hedge Fund Trader (“Marketing Agent”) whereby tastytrade pays compensation to Marketing Agent to recommend tastytrade’s brokerage services. The existence of this Marketing Agreement should not be deemed as an endorsement or recommendation of Marketing Agent by tastytrade and/or any of its affiliated companies. Neither tastytrade nor any of its affiliated companies is responsible for the privacy practices of Marketing Agent or this website. tastytrade does not warrant the accuracy or content of the products or services offered by Marketing Agent or this website. Marketing Agent is independent and is not an affiliate of tastytrade. 

Legal Disclaimer

There is a very high degree of risk involved in trading. Past results are not indicative of future returns. MadHedgeFundTrader.com and all individuals affiliated with this site assume no responsibilities for your trading and investment results. The indicators, strategies, columns, articles and all other features are for educational purposes only and should not be construed as investment advice. Information for futures trading observations are obtained from sources believed to be reliable, but we do not warrant its completeness or accuracy, or warrant any results from the use of the information. Your use of the trading observations is entirely at your own risk and it is your sole responsibility to evaluate the accuracy, completeness and usefulness of the information. You must assess the risk of any trade with your broker and make your own independent decisions regarding any securities mentioned herein. Affiliates of MadHedgeFundTrader.com may have a position or effect transactions in the securities described herein (or options thereon) and/or otherwise employ trading strategies that may be consistent or inconsistent with the provided strategies.

Copyright © 2025. Mad Hedge Fund Trader. All Rights Reserved. support@madhedgefundtrader.com
  • Privacy Policy
  • Disclaimer
  • FAQ
Link to: Trade Alert - (TLT) December 1, 2022 - TAKE PROFITS - SELL Link to: Trade Alert - (TLT) December 1, 2022 - TAKE PROFITS - SELL Trade Alert - (TLT) December 1, 2022 - TAKE PROFITS - SELL Link to: Trade Alert - (TLT) December 1, 2022 - TAKE PROFITS - SELL Link to: Trade Alert - (TLT) December 1, 2022 - TAKE PROFITS - SELL Trade Alert - (TLT) December 1, 2022 - TAKE PROFITS - SELL
Scroll to top