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Fundamentals
Realistic Strategies, Realistic Returns

June 13, 2022

As I stated last Wednesday, going forward I plan to shorten the alerts. If you still have any questions, please check out the prior alerts or, even better, take a look at the strategy guides on your subscriber page.

As I stated last Wednesday, going forward I plan to shorten the alerts. If you still have any questions, please check out the prior alerts or, even better, take a look at the strategy guides on your subscriber page.

I would start with the following:

And don’t forget we are having our first webinar tomorrow. Whether you have questions about our strategies, or even about setting up your account or how to make your own trades, I will answer whatever’s on your mind. I’ll also discuss our positions, portfolio and how to manage our positions going forward. The subscriber-only webinar is on Tuesday, June 14 at 1:00 p.m. ET. Register here.

With the market pulling back significantly again today, I want to continue with my measured approach, so today I’m only going to issue an alert for iShares 20+ Year Treasury Bond ETF (TLT). That being said, there is still a chance I might send out an alert for Vanguard Total Stock Market ETF (VTI) before the closing bell today. If not, expect to see a trade in VTI tomorrow morning.

iShares 20+ Year Treasury Bond ETF (TLT)

The iShares 20+ Year Treasury Bond ETF (TLT) is currently trading for 110.56.

COI_F_061322_stockchart

The Trade
Buy to open January 19, 2024, TLT 85 calls for $29.10 (prices may vary, adjust accordingly)

COI_F_061322_LEAPS

Once that occurs:

Sell to open July 15, 2022, TLT 114 calls for $1.65, if not higher (prices may vary, adjust accordingly)

COI_F_061322_sellcall

You could also place the order as a long diagonal debit spread, but I will go over that and much, much more in our upcoming webinar.

Potential Return (premium) – 5.67% over the next 32 days

Break-even: 112.35

Cost Basis Since Initiated: 112.35

Again, if you have any questions, please do not hesitate to email me at andy@cabotwealth.com.