Interesting times ahead. With the US provoking China with a visit to Taiwan, who knows how China is going to react. Are we going to see Taiwan being run over by China the same way as Ukraine being run over by Russia?
It's all dirty politics and I hate it, to say the least. But I have to pay attention to it as it affects the markets big time.
For example, for the past few days I have been itching to sell naked put against FXI but frankly speaking I have no idea what would happen to that index if the US kicks out all the publicly traded companies from the US stock exchanges as a retaliation to steps that the Chinese may take. So I have not pulled the trigger yet.
So what's my trade for today?
I have never traded #TLT (#20yrTreasury) so I thought it's time to get my hands dirty. According to a study I came across, the two ETFs have moved in opposite directions more than 60% of the time so using TLT should serve as a light portfolio hedge.
TLT SPY Weekly Chart
Trade Type: Short Strangle
Strike: $110 / 130
Expiry: 16 Sep
IV Rank: 40.5
Cap Req: $1413
Annualised Prof at Expiry: 53%
IMPORTANT: Studying previous trades provide the opportunity to everyone to learn a great deal so I encourage you to click on the links below and digest the info.