With all the talk of QE2 and its impact on interest rates, how should you trade bonds?
If you're cautious and already long, Brian Stutland of Stutland Equities suggests selling the Jan 101 call in the TLT . Specifically for every 10 bonds you own or $10,000, Stutland says sell 1 call.
Learn more about this trade. Watch the video now.
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Trader disclosure: On Oct. 28, 2010, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Seymour owns (AAPL), (BAC), (STD), (PBR), (POT); Adami owns (AGU), (BTU), (NUE), (C), (GS), (INTC), (MSFT); Adami’s wife works at Merck; Terranova owns (APA), (AAPL), (AXP), (C), (GOOG), (GS), (ISRG), (JPM), (ORCL), (PCP), (PEP), (PFE), (UPL), (VRTS), (XBI); Cortes owns (K); Cortes owns (TSN); Cortes is short crude oil; Cortes is short gold; Cortes is short (AAPL); Cortes is short (RSX); Cortes owns the S&P 500
For Gary Kaminsky
***No Disclosures**
For Joe Terranova
Terranova is chief market strategist of Virtus Investment Partners, LTD.
Virtus Investment Partners own more than 1% of (ABAX)
Virtus Investment Partners own more than 1% of (ALK)
Virtus Investment Partners own more than 1% of (AMKR)
Virtus Investment Partners own more than 1% of (CASS)
Virtus Investment Partners own more than 1% of (CSVI)
Virtus Investment Partners own more than 1% of (IGE)
Virtus Investment Partners own more than 1% of (LDR)
Virtus Investment Partners own more than 1% of (LPHI)
Virtus Investment Partners own more than 1% of (MGRC)
Virtus Investment Partners own more than 1% of (NRCI)
Virtus Investment Partners own more than 1% of (DBV)
Virtus Investment Partners own more than 1% of (XLB)
Virtus Investment Partners own more than 1% of (XLP)
Virtus Investment Partners own more than 1% of (XLY)
Virtus Investment Partners own more than 1% of (XLF)
Virtus Investment Partners own more than 1% of (XLI)
Virtus Investment Partners own more than 1% of (XLU)
Virtus Investment Partners own more than 1% of (SUBK)
Virtus Investment Partners own more than 1% of (WDFC)
Virtus Investment Partners own more than 1% of (YDNT)
Virtus Investment Partners own more than 1% of (DRYS)
For David Maris
***No Disclosures**
For Benjamin Salisbury
FBR has managed a (MEE) public offering and received compensation for investment banking services from the company in the past 12 months.
FBR makes a market in (MEE)
A member of Salisbury’s team owns shares of (RIG)
FBR makes a market in (RIG)
FBR makes a market in (URS)
FBR makes a market in (ROSE)
FBR makes a market in (PCX)
For Brian Stutland
Stutland Equities is long (TLT), short calls
Stutland Equities is long U.S. Treasuries
CNBC.com with wires.
