On Friday’s CNBC’s Options Action, the crew analyzed the US Treasury market’s performance. Long term bonds have sold off significantly since Mid 2016 and has stabilized over the last couple of months. With expectations of the Fed raising interest rates in 2017 tapering, it provides a case of a possible retracement in yields. As economic growth under the Trump administration still unclear, this provides an opportunity for a contrarian bet on the markets. Carter Worth looks to bet for 10 year yields to retrace back to 2.15%. Looking for TLT to break higher, Michael Khouw suggested buying an April 120/126 Call Spread for a $1.50 Debit.
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