We are looking for a long term, low risk bond trade with the bond ETF TBT. If you look at the technical charts, it is a counter trend trade. As long as TBT stays above 15.11 at market close, we will implement this trade. The target is 17.85 by December. We don’t need a stop since the risk is going to be extremely low to a point, it is not worth closing it out if it gets to our stop of 13.95
Here is the risk graph. We are looking to risk $27/contract to make $72/contract by December expiration. Our resistance is 17.85 and the option risk has max profit at 17.00 and above.
If you would like to learn how to trade options then go to www.ichimokutrade.com
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