ETF - Fixed Income
TLT
iShares 20+ Year Treasury Bond ETF
Enhanced income from long-term treasuries with TLT covered calls and cash secured puts. Interest rate play.
Monthly Premium1.5-2.5%
Annualized Return18-30%
Stock Price$88-100
IV RankModerate-High (40-60)
Options LiquidityExcellent
Dividend Yield3.8%
Why TLT for Covered Calls & Cash Secured Puts?
TLT offers enhanced income on treasury exposure. Higher volatility than expected due to rate sensitivity. Good for rate decline bets.
Example Covered Call Trade
TLTCovered Call
Strike Price$100 (6% OTM)
Expiration30 days
Premium$1.80 per share
Return If Flat1.9% ($180)
Return If Called7.9% ($750) + dividend
Keep Probability70% keep shares
Recommended Strategy for TLT
Sell calls 5-8% OTM for enhanced bond income. Good for fixed income allocation with premium.
Risks to Consider
- Interest rate sensitivity
- Duration risk
- Inflation impact
- Opportunity cost in rising rate environment
Analyze TLT Covered Calls Now
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