Trade Idea: TLT Long

I'm hedging back the TLT long idea, actually a counter trend trade idea. I'll explain everything with charts, but it's going to take a little time to put it together and I want to get a TLT position in place now, even though I think we might get slightly better prices intraday, I don't think it's worth missing.

The TLT equity position was opened well over a month ago and it was an odd-ball, since TLT doesn't have any leveraged ETFs (at least not with liquidity), I shorted TBT which is the 2x short/inverse of TLT. Thus in shorting an inverse, I effectively created a 2x long TLT position with a bit better liquidity. This position has been in place since the counter trend bounce in TLT/20+ year Treasuries came to light and is down about -6% which is fine with me considering it's a 2x leveraged position.

The remainder of the position I always intended to open (having left room in the original position to add to)  with options/leverage. In this case, I'll be cutting back the initial size envisioned for reasons I'll go in to in the follow up after this post, but even as a speculative sized position, it will still bring the TBT short + plus the TLT call to a combined position size that would be close to a full size normal position.

I've decided to go with TLT July 17th Calls with a strike of $116 and I'm going to open them now.

 If this is a true counter trend move on the liquidity in bonds (low), then it should be a monster mover and I don't think the slightly reduced position size will have any meaningful effect.

The original explanation of the bond counter trend bounce/rally in TLT's case can be found here,  Bond Rally / Swing.

Charts o follow...