Options Traders Buy 175,000 TLT Calls, Betting on 8% Bond Rally
Updated
Updated · CNBC · Aug 25
Options Traders Buy 175,000 TLT Calls, Betting on 8% Bond Rally
3 articles · Updated · CNBC · Aug 25
Summary
More than 175,000 TLT calls changed hands Tuesday versus just under 40,000 puts, extending a summer-long run of bullish positioning in the long-bond ETF.
A notable trade bought 10,000 November $85 calls for about $1 million and sold 15,000 $90 calls for $375,000, a bullish spread that profits if TLT climbs roughly 8% to levels last seen in March.
TLT rose 0.9% to $83.30—its highest since July 29—while investment-grade corporate bond ETF LQD gained 0.5%, signaling broader fixed-income strength.
The bets come after a near year-long rise in yields pushed 30-year Treasury yields to 19-year highs last week following Treasury Secretary Scott Bessent's expanded bond buyback.
This week's PCE inflation data, Nvidia earnings and the Jackson Hole symposium could test whether the options market's wager on lower long-end rates gains traction.