The Fed is pumping TLT tomorrow and Thursday again by several billion dollars.
Tomorrow at 10:30am - the Fed is buying 1.75 billion in long bonds tomorrow and will raise TLT by at least 0.5-1.0 (10k contracts of /zb)
Wednesday at 10:30am - the Fed is buying 6 billion in 5yr and 7yr notes. TLT will get a reciprocal pump
Thursday at 10:30am - the Fed is buying additionally 1.25 billion in long bonds and 500 million in 10 year notes. This buy will again raise TLT by 0.5-1.0
OPTION PLAY - Purchase TLT 170c 8/7 before this happens
IV is only 15% and there is virtually no skew which equals a huge increase for each dollar change in price. I made 30% increase on my orders opened today when TLT gained on only $0.60, image below.
Charts and TLT chart: https://imgur.com/gallery/Xd0Q1qM
Here is the Fed schedule of securities purchases for reference: https://www.newyorkfed.org/markets/domestic-market-operations/monetary-policy-implementation/treasury-securities/treasury-securities-operational-details#current-schedule
TLT 170c 8/7 and 171c 8/7 and 171.5c 8/14
Submitted August 03, 2020 at 07:52PM by dramaticdan https://ift.tt/3kasB3N
