TLTW hopeful climbTLTW appears to be on a hopeful climb. It seems to be in an upward parallel channel and appears 🤔 to be making a double bottom on the trend line. SAR indicator flashed a buy. RSI and SRSI levels are healthy.
Key stats
About iShares Trust iShares 20+ Year Treasury Bond BuyWrite Strategy ETF
Expense ratio
0.35%
Home page
Inception date
Aug 18, 2022
TLTW teaches an old dog a new trick. The fund holds shares of the iShares 20+ Year Treasury Bond ETF (ticker: TLT) and writes (sells) one-month, 102% out-of-the-money covered call options. The objective is to provide additional income, in the form of option premium, along with the distributions received from the underlying bond portfolio. The fund will write call options up to the full amount of the shares being held in the portfolio. In doing so, the fund takes in option premium but forgoes the upside potential on the bonds at the strike price. The fund uses European-style options, which means the call options can only be exercised on the expiration date. This helps to roll the call options and reduces the chance the fund must physically deliver underlying shares. This strategy may outperform in periods of rising rates and widening credit spreads. In periods of declining rates, the fund will likely underperform as compared to just holding long-term US Treasurys.
Classification
What's in the fund
Exposure type
ETF
Bonds, Cash & Other100.00%
ETF98.96%
Cash1.34%
Miscellaneous−0.30%
A terrible covered call strategy bond etfDisaster when interest rates drop or new hotness, you decide!
LONG AF OMGZORZI cant believe this is happening??? LOL so lets provide liquidity to the call market for TLT???? "no leg to stand on? we will just make one!!" LMAO
"you cant kill the bond market!!!" UNLESS of course you stand to profit from it?
I leave you with one last metaphor: JPOW has painted himself into a
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Displays a symbol's price movements over previous years to identify recurring trends.