Strategy Recommendation T-Bond Options

Long Bond Treasury Futures Oversold
Treasuries are down again this morning but are approaching critical support near 146ish. Given the moderately oversold technical conditions, positive seasonal tendencies and volume indicators we feel as though these technical levels will hold on this trip down. The uptick in volatility has pumped up put values to make selling them somewhat attractive. We like the idea of selling the October 142 puts for about 25 ticks or $390.The October bond options trade against the December futures, which are about one full point higher than the September. Accordingly, the 142 put is about 5 full handles away from the market and has 38 days to expiration.**There is unlimited risk of loss in option selling! 
 
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Due to time constraints and our fiduciary duty to put clients first, the charts provided in this newsletter may not reflect the current session data.**Seasonality is already factored into current prices, any references to such does not indicate future market action.

There is substantial risk of loss in trading futures and options. Please see full disclosure below.

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