TLT – Lehman Bond ETF (Last:118.62)

What a grind this has been!  An unfulfilled correction target at 116.69 still beckons, and so we should be wary about jumping in prematurely, especially since there’s no rush to re-establish a long position. You can see that TLT has been pounding a 118.20 Hidden Pivot support for nearly two weeks, providing a modest reason to stake out a speculative long position at these levels. Accordingly, I’ll suggest bidding 0.21 for four Nov 14 119 calls. You should make the bid contingent on TLT trading 118.18 or higher, but please note that a decisive breach of the 118.20 pivot would shorten the odds of a washout to 116.69. _______ UPDATE (8:23 p.m.): I heard from a subscriber in the chat room who bought the calls for 0.22, so I’ll use that price for a tracking position. Now, offer half of the position to close for 0.44, day order. If you haven’t established a position yet, don’t, since the options expire on Friday. ________ UPDATE (November 12, 10:20 a.m.): The calls have tripled in price today on an 80-cent rally in the underlying, so subscribers who did this trade now hold half of the original position, effectively with a zero cost basis and no risk. Offer half of the calls that remain for 1.00, then let the last of them ride till Friday, to be exited as you please. _______ UPDATE (10:42 p.m.): Taking a partial profit at 1.00 would have worked out beautifully, since the calls peaked at 1.04. Any calls still held can be handled however you please, since, if you followed my advice, you’ve already booked a profit on options that have quadrupled in price.