23h • 💡 Trade Ideas & Analysis
Bonds, Auctions, and Cheap Vol: My Synthetic Covered Call in TLT
TLT has been flat near 89, yet volume keeps rising while volatility collapses. An IV Rank of just 2 is not a green light to buy cheap vol. It reflects heavy institutional call selling that is keeping premiums suppressed. Long-vol is unattractive here, but this creates an edge for premium sellers.
With yields capped both ways, TLT remains boxed in. I'm leaning into a synthetic covered call: zero-cost, capital-efficient bond exposure that generates daily theta. If bonds weaken, I can hedge by rolling the short call lower.
As you can see, quiet markets often hide the best opportunities. Structured correctly, TLT can shift from dead money into a consistent income engine:
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Bonds, Auctions, and Cheap Vol: My Synthetic Covered Call in TLT
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