TLT Analysis

iShares 20+ Year Treasury Bond ETF (TLT)

I have entered a short iron condor spread on TLT, using options that trade for the last time 45 days hence, on February 21. The premium is a $0.78 credit and the stock at the time of entry was priced at $138.08.

The profit zone for this position is between $143.78 on the upside and $131.78 on the downside.

The implied volatility rank (IVR) stands at 36.7%.

Premium: $0.78 Expire OTM
TLT-iron condor Strike Odds Delta
Long 146.00 89.0% 11
Break-even 143.78 83.5% 16
Short 143.00 78.0% 21
Short 134.00 79.0% 23
Break-even 131.78 84.5% 16.5
Long 131.00 90.0% 10

The premium is 26.0% of the width of the position’s wings.

The profit zone covers a 4.1% move to the upside and a 4.9% move to the downside of the entry price, for total coverage of 8.9%

The risk/reward ratio is 2.8:1, with maximum risk of $222 and maximum reward of $78 per contract.

By Tim Bovee, Portland, Oregon, January 7, 2020


Tim Bovee, Private Trader tracks the analysis and trades of a private trader for his own accounts. Nothing in this blog constitutes a recommendation to buy or sell stocks, options or any other financial instrument. The only purpose of this blog is to provide education and entertainment.

No trader is ever 100 percent successful in his or her trades. Trading in the stock and option markets is risky and uncertain. Each trader must make trading decisions for his or her own account, and take responsibility for the consequences.

Creative Commons License

All content on Tim Bovee, Private Trader by Timothy K. Bovee is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.

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