Bill,
I began to trade TLT in early May, 2009 as
the fixed income portion of my IRA account. To enhance the return I sell
calls against my position each month. (We sell the call with the
greatest TV, Time Value) This idea was borrowed from the moderator of
another yahoo group I am a member of. I liked TLT due to the volume and
and liquidity of the options. The on-going trade has worked very well.
So far I have never been called early for a dividend, receiving it each
month. When called away I replace the position. Often late on expiration
Friday, if in the last few minutes of trade it is apparent we will be
called the new positions are added. I figure I will capture an extra few
days of TV erosion over the weekend and a good use of cash since I
would want to re-enter the position on Monday.
My concern will be the FED-HEADs starting
to play with interest rates. We basically have no place to go but up
from where we are currently and that will of course affect TLT. I am
looking at TBT as a short term trade ahead of FED meetings. TBF, a
non-leveraged ETF, would be preferable to me but the volume is low and
open interest in the options is almost non-existent.
I have looked over the site you suggested
(www.oldschooloptio
TLT, perhaps because it is an open trade? Without exposing information
you have agreed not to share, could you write a little more about how
you are using TLT and what the plan will be to cope with interest rate
increases?
Regards and
great trading,
Jack
--- In ConservativeOptionS
<uliv2003@..
>
> When the SPX made a recent high, there were only 138 components
following suit. Our risk management tools have us in TLT covered writes
until the market corrects. IYY IWN IWM TRAN UTIL IWS all failed to make
new highs.
>
> See www.oldschooloption
>
> For more info
>
> Regards,
>
> Bill
>
No comments:
Post a Comment