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Trade Alert - (TLT) - Expired
Expiration of the iShares Barclays 20+ Year Treasury Bond Fund (TLT) October $100-$103 bull call spread at $3.00
Closing Trade ? not for new subscribers
10-18-2013
expiration date: 10-18-2013
Portfolio weighting: 10%
Number of Contracts = 35 contracts
My bet that the US government would not default on its debt paid off. Despite all the squawking and political posturing, it was never going to happen. This is why I tell readers to put their TV?s on mute and just watch the stock prices if they ever want to make money.
That allowed the $102 bottom in the (TLT) that we made in September to hold. My 2.40%-3.0% range in the ten-year Treasury yield was good.
I?ll hold off on any more (TLT) trades for now, until we approach the outer envelope of this range, then I?ll flip the other way. I think there is no chance for a major crash in the bond market, and will go into the reasons why in a future piece.
Here is the final P&L on this position:
Long 35 October, 2013 (TLT) $100 calls at?????..?$7.04
Short 35 October, 2013 (TLT) $103 calls at??.............?$4.04
Net Proceeds:????????????.??..??.......$3.00
Profit: $3.00 - $2.82 = $0.18
($0.18 X 100 X 35) = $630, or 0.63% for the notional $100,000 model portfolio.
