Bond prices were diving when the tutorial session began, ostensibly because of a fraudulent report that GDP had grown by 4% in the last quarter. The market’s unwarranted reaction to this disinformation afforded us an unusual opportunity to buy call spreads in TLT at fire sale prices. This lesson contains some of the most detailed instructions I’ve ever presented for “working” an options order. As you will discover, the task does NOT require a sophisticated understanding of puts and calls — only a focus on bids and offers for a couple of TLT calls tied to a calendar spread that deserved to be bought extremely aggressively.
