$TLT VERTICAL 250417 PUT 80.0/PUT 82.0$
Disclaimer: Whatever I say or post doesn't act as financial advice, so please do your due diligence before making any decision.
A lot of ppl are still having a very bullish sentiment on the market. However, looking at current US interest rate, its around the same level as it was in 2008. And if you recall, it was around 2007 - 2009 that recession occurred, and spiral the equity market down.
Yes the fed promise to have further rate cuts going into 2025, but with inflation catching up faster than anything else, do you think they will really cut rates as aggressively as end of 2024? And with rates staying on a high side, it will indirectly lead to better bond yields.
With that said, what do you think will happen if bond yield rates hit 5% or higher? Big sharks in the market will start selling some of their positions in equities and park in bonds to exploit the good rates.
That is the rationale of me taking this trade today on TLT. The put strike price of 82 is also below the lowest price point of TLT. So that gives me an extra layer of protection as well.
ROI = 50/200 = 25% in 4 months time.
@madluvyz - Specialist in using TA to sell options and swing trade.😺
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