$TLT 20250718 85.0 CALL$ Executed a poor man covered call strategy as follows:
1. Long a call options TLT with expiry on 18 Sep 2025 (Dte 51 at the point of purchase) with strike 85.0 at USD 2.22. 2. Short a put options TLT with expiry on 6 June 2025 (Dte 7) with strike 87.0 at USD 0.34.
Rationale:
1. Currently call options with the long expiry have a theta of 0.018 vs short call options with theta of 0.036
2. TLT current price as at 31 May 2025 at USD 86 (approximately 3.2%) away from the 52 weeks low at USD 83.30.
Potential return:
0.34/2.22= approximate 15.3%/week
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