Short TLT - Attractive Opportunity
With US rates rising significantly in the past couple of months - how should a trader play this
Being structurally short
TLT offers significant upside with a Put Butterfly Spread
We have outlined trade which can be accessed on profile however a summary is provided
2 Month Put Skew is 3.62 standard Deviations above its 1 year mean
2 Month Volatility is 1.58 standard deviations above its 1 year mean
TLT (Long US Treasury Bonds) is very vulnerable due to above trend growth, increasing budget deficits, the potential for a return of inflation and Fed Tapering
Interested in all thoughts & analysis on our idea.
Being structurally short
TLT offers significant upside with a Put Butterfly SpreadWe have outlined trade which can be accessed on profile however a summary is provided
2 Month Put Skew is 3.62 standard Deviations above its 1 year mean
2 Month Volatility is 1.58 standard deviations above its 1 year mean
TLT (Long US Treasury Bonds) is very vulnerable due to above trend growth, increasing budget deficits, the potential for a return of inflation and Fed Tapering
Interested in all thoughts & analysis on our idea.
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