Sold August TLT Vertical Call Spread

After a hiatus since my last TLT losses, I’m back in the 20-year treasury ETF with a better strategy. As I did when I first started trading TLT years ago, I hedged this trade so I don’t repeat the same idiotic mistake from last summer. The non-hedged income was great until TLT hit a new all-time high and I got spanked. I’ve learned from my mistake and traded back in line with a better handle on risk this time.

While TLT was trading at $120.30, I sold six TLT August $129 calls and bought six TLT August $129 calls for $0.50 per combination. I received $292.68 after paying $7.32 in commission. Along with the hedge that I didn’t have last summer, I sold fewer combinations to begin my trade and will consider adding more if TLT goes up much more and then looks to be finished with its ascent.

You can see more of my trade details and the TLT chart I used here on YouTube:



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