Our most recent trade in the PRO service was buying the TLT Jan 2027 $80P on Wednesday. It was unusual for us to go out four monthly expirations, but bonds and interest rates need a lot of time to really pan out, although apparently, not so much on this signal: Note: I've moved the stop on this position up to breakeven - see text below. Once these $80 puts are deep enough in the money, expect to roll them into lower, out-of-the-money strikes. This entire down move in bonds, corresponding to a sharp rise in interest rates, maybe a lot closer to its beginning, than its end. As is evident from the options table snapshot below, taken at the 30 minutes into today's session, the January expiration series has a lot of volume and open interest across most near-the-money strikes: For now, lets remove all risk whatsoever from this trade by moving the stop up to breakeven. In less than a week these puts are up 50% and a few more days like Wednesday and Thursday should take the puts up into triple digits, triggering our trailing 50% profit stop. I can get used to this kind of trading, no time pressure, no risk, and a smorgasbord of opportunistic strikes to chose from for our next move. Stay tuned.
