Todd Gordon's iShares Barclays 20+ Yr Treas.Bond ETF Trade

On CNBC's Trading Nation, Todd Gordon spoke about a bearish options trading idea in iShares Barclays 20+ Yr Treas.Bond (ETF) TLT.

He thinks the Fed is going to increase interest rates in March and that iShares Barclays 20+ Yr Treas.Bond (ETF) is going to trade lower. Gordon believes the ETF is trading at its resistance and he expects to see a pull back to $119 or $118. In order to make money on a potential move lower, he wants to buy the March 121/118 put spread for $0.99.

The trade breaks even at $120.01 or 1.5 percent lower. It can maximally make a profit of $2.01, if the stock drops to $118 or lower. Gordon added that he's going to place a stop loss at $0.50.

Market News and Data brought to you by Benzinga APIs
Comments
Loading...
Posted In: CNBCOptionsMarketsMediaETFsTodd GordonTrading Nation
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!