TLT has been too squirrelly lately to buy in the relaxed way we prefer, but we can take a conservative shot today with a distress bid down around the 128.90 target shown. If the stock (ETF) trades within 0.08 of the target, buy four May 8 132 calls for around 0.92-0.94. This is a day order, and you can refine the option price by monitoring the bid/asked as the underlying vehicle approaches the target. My estimate is conservative but do-able, but we don’t want to miss out on the trade just because we were too stingy. _______ UPDATE (April 8, 12:21 a.m.): Let’s try again, bidding 130.36 for 400 shares, stop 130.29, day order. On the hourly chart, this is just above the midpoint support of a= 131.48 on 4/6. _______ UPDATE (9:34 a.m.): An overnight high at 131.28 (aka point ‘C’) has shifted things slightly. Now, bid 130.07, stop 130.01. If the stop is tagged, that would signal more downside to as low as 128.81, another bottom-fishing number. ________ UPDATE (1:55 p.m.): We caught a beautiful low in TLT at 130.02 that has given way to an 80-cent rally. Raise the stop-loss, using an impulsive stop on the 5-minute chart. Right now, that would imply exiting on a power dive touching 30.11. Check my 13:52 note in the chat room for further guidance. _______ UPDATE (April 9, 1:33 a.m.): As of this moment, an impulsive stop-loss based on the 5-minute chart would pop us out of the position at 130.60. Remember: The down-leg must be uncorrected on the ‘5’ once the internal peak at 130.81 has been exceeded to the downside (see inset).
