Monday, June 22, 2015

TLT - Iron Condor

Jun 22

Analysis

TLT is still in the high IVR (70). It has recently reversed and bounced off its lows, but looks to resume trending downward. If volatility subsides, this safety trade will continue to drop and follow an expected move up in interest rates. This product is inversely correlated.

Trade

TLT price 117.49

-1/c 119-121 Jul 2' call spread
-1/c 114-112 Jul 2' put spread

Net credit = 0.60/c

This is a downward skewed iron condor with the put side at 1 SD for the 2 week duration.

-End

Jun 30

Trade

+1/c 119-121 Jul 2' call spread
+1/c 114-112 Jul 2' put spread

Net debit = 0.30/c

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