• 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) January 15, 2021 - BUY

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) – EXPIRATION AT MAX PROFIT

EXPIRATION of the iShares Barclays 20+ Year Treasury Bond Fund (TLT) January 2021 $164-$167 in-the-money vertical Bear Put spread at $3.00

Closing Trade

11-15-2021

expiration date: January 15, 2020

Portfolio weighting: 10%

Number of Contracts = 40 contracts

This option call spread does not expire until the end of today, and it is so far in the money it is embarrassing. Since we added this position, United States Treasury Bond Fund has collapsed a gut-churning $9. We have an embarrassment of expiration riches this month!

Longs going up, shorts going down, that’s how you make money in the stock market.

Provided that (TLT) does not rise by more than $5.38 by the end of today, the iShares Barclays 20+ Year Treasury Bond Fund (TLT) January 2021 $164-$167 in-the-money vertical Bear Put spread will expire at $3.00.

That means you get to take home $2,000, or 20% in 15 trading days. Well done, and on to the next trade.

With 2021 expected to be one of the strongest years for economic growth in history, there is no chance you’ll see a major rally in the US Treasury bond market from here.

The fundamentals of this trade are very simple. With the national debt already rising from a record $23 trillion to an eye-popping $28 trillion by the end of 2020, the US Treasury demands on the bond market are going to be incredible.

It is almost mathematically impossible for bond prices to rise substantially from here. They can only go sideways at best, or down big in the worst case. Sounds like a great short to me.

This was a bet that the (TLT) would not rise above $164.00 by the January 15 option expiration in 23 trading days. To lose money on this position, ten-year US Treasury yields would have to approach 0.60%.

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

EXPIRATION of 40 January 2021 (TLT) $167 puts at…...........…$8.38

EXPIRATION of short 40 January 2021 (TLT) $164 puts at........$5.38

Net Proceeds:………................………………….………..………….….....$3.00

Profit: $3.00 -$2.50 = $0.50

(40 X 100 X $0.50) = $2,000 or 20.00% in 23 trading days. 

 

 

 

The Fat Lady is Singing for the Bond Market

 

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 Trader2021-01-15 13:49:472021-01-15 13:49:47Trade Alert - (TLT) January 15, 2021 - BUY

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: January 15, 2021 Link to: January 15, 2021 January 15, 2021 Link to: The Chip Bonanza Link to: The Chip Bonanza The Chip Bonanza
Scroll to top