March Treasury Bonds are down 11/32 at 119:29 this morning as I write.  The enclosed chart shows that the T-Bonds have stalled on their near term rally right in the middle of the trading range of the past couple of months.  The directional movement indicators are slightly to the bull side but both lines are edging lower along with the ADX line suggesting that there really is no trending market at this time.  As we approach Thanksgiving holiday this week, I would expect the trading volume to slow down.  Stay with current positions for now.

 Our December 115:00/113:00 ratio put spread expired on Friday, worthless.  That means that the $62.50 they paid us up front to do that trade is ours to keep.  It is nice to be paid for trades that don’t work out.

 Followers should also be long one March Bond (114:00 strike) put from 2 12/64 and short 2 March Bond (110:00 strike) put options from 1 9/64 each for an overall credit of 6/64 or $93.75 gross.

You should also be long one March Bond (108:00 strike) put option from 52/64 and short 2 March Bond (105:00 strike) put options from 29/64 each or an overall credit of 6/64 or $93.75 gross.

And finally, you should be short one March T-bond futures contract from an average cost basis of 118:16 and short one March T-Bond (121:00 strike) put option from 3 24/64.

March options expire in 88 days.

 David Hall

 The information  and opinions contained herein comes from sources believed to be reliable, but are not guaranteed as to accuracy or completeness. The risk of loss in trading futures and/or options can be substantial. Each investor must consider whether this is a suitable investment. When trading futures and/or options, it is possible to lose more than the full value of your account. All funds committed should be risk capital. Past performance is not  necessarily indicative of future results.