TBT - Open Position

Written on January 7, 2009 – 1:28 pm | by admin

I opened a position in TBT today.  Its an ultra short of Lehman 20 year treasuries.  This falls below my 20% annual threshold but this is a position that I am willing to hold on to because bond yields won’t go much lower than what they were a month ago (negative yield for 3 month t-bill).  I am also going to try and hold onto this position as I see good upside as the market starts to turn a corner.  I guess I am going to have to work on my rolling up and out skills with this position.

Buy: 100 @ $42.495 ($7 commission)
Initial Investment: $4256.50
Sold: $42 strike @ $1.40 ( $8.25 commission)
Net Investment: $4124.75
Expected Return: 1.41%

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