Interest rates are ticking up and one of the ways to play higher interest rates is being Long TBT (Inverse 20-Year Treasury Bonds) or Short TLT (20-Year Treasury Bonds). Since neither are in our permanent portfolio, I am adding a Long TBT position to the Special Situations group. Whether or not Bonds/Interest Rates becomes a regular member of our Intermediate Term portfolio will depend on the performance of this trade, as well as the continuation of the trend (which really is one and the same criteria).
Thursday Update: New Special Situations Trade
New Special Situations Trade:
Long TBT shares and/or Long TBT Jan $35 Call (trading at about $2.25).
Updated Trading Tables will be posted later today.