I have been looking at TLT options recently and I am curious about their performance.
Bond ETFs can be hard to read. I made a small profit on calls last month but lost on puts the following week.
Has anyone else traded TLT options? How did it go for you?
TLT options suffer from time decay. Volume decreases with low volatility. Manage risk as they react sharply to interest rate changes.
TLT’s tricky - it moves opposite to interest rates. Rates up, TLT down, and vice versa.
Watch Fed meetings and economic data releases. That’s where you’ll see the biggest TLT moves.
TLT options aren’t as liquid as SPY or QQQ, so you’ll deal with wider spreads. Getting decent fills can be a pain.
Bond options destroyed me in 2022 when rates shot up. Blew $800 on TLT calls betting rates would fall.
Now I only trade TLT around Fed announcements. Premiums are insane but at least the thing actually moves.
Stick with ATM options, 30-45 days out. Go longer and you’re just watching your money disappear.
Made decent money on TLT puts when rates spiked. Avoid weekly options completely.
TLT options can be unpredictable. They often stay stagnant until major events like Fed meetings. Timing is crucial because the price can shift drastically, but it can fade just as fast. If you hold for too long, you risk losing value, especially during dull periods. Focusing on key economic announcements usually yields better opportunities than other times.