Mike Khouw's iShares Barclays 20+ Year Treas.Bond (ETF) (TLT) Trade
On CNBC's Fast Money, Mike Khouw suggested to investors that have already made significant gains in iShares Barclays 20+ Year Treasury Bond (ETF) (NYSE: TLT) to consider an option strategy that would protect their gains.
In order to protect gains in TLT, Mike Khouw wants to buy the December 105 put for $3.70, and sell the December 99 put for $1.70. Additionally, he wants to sell the December 114 call for $2.00.
He would not pay any premium for this structure, and if TLT jumps around 8%, he would get called away. iShares Barclays 20+ Year Treasury Bond (ETF) (TLT) fell 0.32% today, and closed at $107.41.
(c) 2012 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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