New TLT position

I haven’t traded TLT before. It is an ETF tracking the Barclays U.S. 20+ Year Treasury Bond Index.

To understand the chart of TLT, the relationship between Treasury yield bonds and interest rates is key to understand. Generally speaking, if you predict interest rates to rise in the future, it is best to avoid long-term bonds (such as the TLT, which is a 20-year Treasury bond) that could lock in a lower interest rate. 

However, if you believe interest rates will fall, then it makes sense to invest in an ETF like the TLT.

TLT has fallen a lot due to the interest hikes of the FED. I am looking that it will stay neutral or mild bullish at the moment.

That is why I will sell a strangle with exp dat 16/12, 92P and 112C for a $2.04 credit.

IVR is still 79 so quite high so I am looking to take early profits at 50% max profit.

This position is 0 delta and adds $4 theta to my portfolio.

Cheers