Bond option trade
 

I almost got these done today,missed by a tick.

June bond options.

Buy 5 94/95 put spreads and sell 1 96 put for 2

credit.This is a must do trade.

glad you\'re back [img]/images/smile.gif[/img] *NM*
 

Re: glad you\'re back [img]/images/smile.gif[/img]
 

Thanks,any thought regarding the option trade?

I like it, I guess...
 

I'm bullish on the CBOE Vix here so, by deduction, I'm bearish on stocks.


And I'm also bullish on oil.


So, in some weird way, although I am bearish on bonds, I don't expect them to just go into freefall, but rather to be choppy with a ceiling.


My thoughts are


1) your play seems a little convoluted - not unlike your reaction to my CPN contraption,


2) I like it in general just because the credit, though 96 seems a little close going out to June, but I assume it has plenty of premium, and


3) I think the 94/95 spread is just right, given the time left and the current price.


I think we'll see 96, maybe a little lower, and a lot of chop.


eLROY

Re: I like it, I guess...
 

You do understand I would be long 5 95/94 put spreads for each short 96 put? I tried to do these

packages for 2 tick credit and could have done them flat..I might have done them flat if I was on the floor but too much slippage from home.

On an expiration basis I lose below 91,homerun is

at 94.I don't think we will free fall either.

Also if there is an "event" it is possible the bonds could stabilze or take off.