Ramie 9:49 am on Monday, October 31, 2016

$TLT rollout

With previous rolls and adjustments I ended up with a Nov 136 straddle. I am rolling that full position out to December and bringing in additional premium (1.08 credit).
Bought to close $TLT Nov 18 136 straddle @ 5.86
Sold to open $TLT Dec 18 136 straddle @ 6.94

vxxkelly 10:27 am on Monday, October 31, 2016

Hey Ramie, I’m not in this trade and have never owned or traded $TLT. Just a question for you. Is there a reason that you didn’t try to roll it down for even or convert it into a strangle? It will take a pretty good drop in rates for $TLT to get back up to $136. Not questioning what you did, just trying to understand it. You and @Fuzzballl sometimes come up with trade structures that I just would have never thought of and they often work out.
- Ramie 11:00 am on Monday, October 31, 2016
  
  Hi Kelly,
  
  I looked at rolling down but there wasn’t too much of a credit I could get. This is one of those positions that’s been rolled and adjusted a bunch of times and each time I’ve brought in more premium. So really I don’t need TLT to get back to 136. I haven’t added it up yet (I will when I look at recording my trades today) but I’m assuming my breakeven will probably shake around 133 and I’ll look for any pop in bonds to get out of the puts. In the meantime I’ll continue selling calls against the position to lower basis. What I probably could have done is been more aggressive with the call side and possibly gone inverted but I thought I’d keep that bullet for if bonds continue to go down.
  - vxxkelly 11:39 am on Monday, October 31, 2016
    
    Got it, thanks.