Trade Alert: TLT

We are closing out our position in iShares 20+ Year Treasury Bond ETF (NASDAQ: TLT) March 16, 2018 $127 call option.

The position is too dependent on the uncertain political machinations now underway in Congress over the fate of the tax legislation.

 

Stock Talk

William Moffatt

William Moffatt

Glad I didn’t pay attention to my e-mail. The TLT call option is up smartly.

Scott Chan

Scott Chan

Dear William,

Glad you are doing well on the trade.

Karl

Karl

I sold as recommend and pot A of your “3-pots-system” starts with a loss of 18% which reduces the gains in the future in this pot. I wonder if this alert was triggered by a sell signal of the indicator or was it an emotional reaction on the “chaos in Washington” as you wrote yesterday?
My opinion is: follow the system and try to make it better but avoid to undermine it by psychlogical conditioned concerns!

Scott Chan

Scott Chan

Dear Karl,

Steve says that the bond indicator was at a level that he could justify staying with the TLT trade. He says he did let his emotion get the best of him here. Given the uncertainty of events in Washington, he didn’t want to risk an even bigger loss so he decided to get out even though he could have stayed with the trade if he followed the indicator signal.

He is considering publishing the indicator levels in the updates so readers can see what they are and possibly consider trade actions based on them.

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