TLT: Did I Get Too Cute?

by JDH on November 18, 2023

I believe interest rates are heading down, so I bought TLT – iShares 20+ Year Treasury Bond ETF to profit from that.

This week, TLT was up over 3%.


But I got greedy and wanted more, so on November 14, I sold the TLT November 17 $90 calls for 66 cents.  I owned the underlying shares, so it was a covered write.

I watched the tape at the end of the day on Friday to see where TLT would close.

If it closed below $90, the option would expire worthless, and I would pocket the 66 cents.

If TLT closed above $90, I still keep the 66 cents, but I am forced to sell my shares for $90 (they get called).

With1 5 minutes to go before the close, TLT was trading at 89.95, so I assumed that’s where the day would end.


In the final five minutes of trading, TLT exploded upwards to close at $90.04.  It’s as though the Big Boyz are manipulating trading.

So, I assume my shares will get called, but that’s fine.  I effectively sold shares worth $90.04 for $90.66, so I’m happy with the transaction.

Will I buy more shares and do a covered write again?

Tune in next week to find out.