We are taking advantage of the opportunity to close out the TLT June expiration
bear call spread for a small gain.
TLT Position Update
TLT closed at $125.78 on Monday â€“ the June call spread is approx. $400 in the black
The May 22nd Couch Potato published a June expiration TLT bear call spread
We plan on closing out this position for an approx. $400 gain (see tables below)
The exit rule for the TLT short call was triggered a week ago, but Treasury bond prices pulled back over the next few days and suspended our plans to adjust the trade. As confirmed in the chart above, Treasury bond prices have stabilized and there is probably more of a risk of the TLT going higher instead of dropping further. At this point it is not worth the risk to try to extract further gains from this trade. Unless Treasury bond prices gap substantially lower tomorrow we plan on closing out the TLT spread in the morning.
Couch Potato Trader Disclaimer
All results reported in this section are hypothetical. While the numbers represented here may have been achieved or beaten by our readers, we make no representation that any individual investor achieved these exact results. The tracking for the plays listed in this section uses closing prices for the day the newsletter is published and it is not meant to imply that any reader actually received those prices (though many often do) or participated in these recommendations (even though many do). The portfolio represented here is hypothetical and for investment education purposes only. It is only an illustration of what type of gains a knowledgeable trader might receive utilizing these strategies. If you don't get close to these results, guess what. It isn't the fault of the strategies.