TLT weekly options

[Guest]

I have been selling naked weekly OTM puts on TLT and also buy/write ITM covered call options on dips for a while, with success. In a flat market, this works extremely well. But this article got me thinking:http://seekingalpha.com/article/305546-selling-weekly-options-on-tlt of "covered puts" as the author describes it. Any thoughts? Is there a calendar trade on TLT that is mentioned on this Forum? Thanks.

QZW

Edited April 29, 2014 by QZW

[Guest]

Covered puts or covered calls , both have same advantage and drawbacks. No difference in strategy. TLT goes up and down at same rate.

One would be better than other if there was difference in speed/rate of climbing up / down.

 

With calendars , you will need constant adjustment to keep delta neutral. It is only for IV play and slow gainer as time decays slowly. 

 

In a flat market,  Iron condors/ butterflies are best 

[Guest]

Covered puts or covered calls , both have same advantage and drawbacks. No difference in strategy. TLT goes up and down at same rate.

One would be better than other if there was difference in speed/rate of climbing up / down.

 

With calendars , you will need constant adjustment to keep delta neutral. It is only for IV play and slow gainer as time decays slowly. 

 

In a flat market,  Iron condors/ butterflies are best 

I agree, but I am now thinking about augmenting the strategy by rebalancing between SPY and TLT monthly puts: http://seekingalpha.com/article/1026371-tlt-and-spy-combining-multiple-market-timing-systems