Dan Nathan's 20-Year Treasury Bond Trade

Dan Nathan spoke on CNBC's Options Action about an options strategy in iShares Barclays 20+ Yr Treas.Bond (ETF) TLT. He believes that bonds could trade higher and he wants to use a risk reversal to make a bullish bet.

Nathan wants to sell the February 116 put for $1.75 and buy the February 127 call for $1.75. The trade would make money above $127 or approximately 4 percent higher and it would lose money if iShares Barclays 20+ Yr Treas.Bond (ETF) trades below $116 at the February expiration. The stock has to drop 5 percent for the trade to lose money.

Market News and Data brought to you by Benzinga APIs
Comments
Loading...
Posted In: CNBCOptionsMarketsMediaDan NathanOptions Action
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!