Long live bonds! Which is not working well, as you imagine, right now...
But TLT is tradable right now. It's so damn boring, expected move $2.7
Yet IV exceeds 20 days HV almost 2x
Basis is $81.15
My reasoning for TLT is this: it pay 5% div, the return on covered calls is another 5% (ish)
And hopefully it delivers some stock appreciation.
Looking at 10-15% return on capital.
Is anybody else trading TLT?
Ketchup pays 7.2% div, happy to own a bit of it.
NOK is boring just going to wait for break even and get out. And HUN is illiquid, going to hold until break even. That, of course, may take forever.