With interest rates down dramatically, how should you play Treasuries? Brian Stutland of Stutland Equities suggests an options alternative.
He recommends the following:
With the TLT around $100
Buy Aug 98 Put $0.35
Sell Aug 102 Call $0.30
Learn more about this trade. Watch the video now!
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Trader disclosure: On Aug 9, 2010, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Adami owns (AGU), (BTU), (NUE), (C), (GS), (INTC), (MSFT); Adami’s wife works at Merck; Finerman owns (AAPL); Finerman's firm owns (ARM); Finerman & Finerman's firm owns (BAC); Finerman’s firm owns (BBY); Finerman's firm owns (LEA); Finerman’s firm owns (KFT); Finerman & Finerman's firm owns (JPM); Finerman & Finerman's firm owns (RIMM); Finerman’s firm owns (TSX); Finerman’s firm owns (GYMB); Finerman’s firm owns (PLCE); Finerman's firm owns (WMT); Finerman's firm owns (DAN); Finerman's firm is short (IJR); Finerman's firm is short (MDY); Finerman's firm is short (SPY); Finerman's firm is short (IWM); Finerman’s firm owns S&P 500 puts; Finerman’s firm owns Russell 2000 puts; Pete Najarian owns (HPQ) call spread; Pete Najarian owns (RIMM) call spread; Pete Najarian owns (GS) calls; Pete Najarian owns (V) call spread; Cortes owns (CIB); Cortes owns (FCX); Cortes owns (OAS); Cortes owns (QQQQ); Cortes is short US Treasuries; Cortes is short the Japanese Yen; Stutland is long (TLT) and short calls; Stutland owns US treasuries
For Brian Kelly
Accounts managed by Kanundrum Capital own (INTC)
Accounts managed by Kanundrum Capital own (RIMM)
Accounts managed by Kanundrum Capital own (ECA)
Accounts managed by Kanundrum Capital own (JPM)
Accounts managed by Kanundrum Capital own (C)
Accounts managed by Kanundrum Capital own (TLT)
For Patty Edwards
Edwards owns (SPY) for clients
Edwards owns (QQQQ) for clients
Edwards owns (HPQ) for clients
Edwards owns (QCOM) for clients
Edwards owns (AAPL) for clients
Edwards owns (VZ) for clients
Edwards owns (C) for clients
Edwards owns (BAC) for clients
Edwards owns (MCD) for clients
For Joe LaVorgna
***No Disclosures***
For Will Power
Robert W. Baird & Co. and/or its affiliates expect to receive or intend to seek investment banking related compensation from (RIMM), (MOT), (NOK), (GOOG), (AAPL) within the next 3 months.
For David Bank
RBC Capital Markets is currently providing The Walt Disney Company with non-securities services
RBC Capital Markets has provided The Walt Disney Company with non-securities services in the past 12 months
For Kurt Nelson
SummerHaven Index Management is the creator and licensor of the SDCI to the U.S. Commodity Index Fund, and SummerHaven Investment Management is the trading advisor to USCI
For Eric Jackson
Ironfire Capital is long (MSFT)
For Nishu Sood
(DHI), (RYL) are investment banking clients of Deutsche Bank
(DHI) has been a client of Deutsche Bank Securities Inc. within the past year, during which time it received non-investment banking securities-related services
Deutsche Bank has received non-investment banking related compensation from (MTH), (RYL) within the past year.
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