Benzinga | Sep 26, 2021 05:26PM EDT

Carter Worth And Mike Khouw's TLT Trade

Carter Worth of Cornerstone Macro said on CNBC's "Options Action" the sell-off in iShares 20 Plus Year Treasury Bond ETF (NASDAQ:TLT) is a bit overdone. TLT has been trading in a range since July, and Worth expects it to stay in the range or move higher. He is not betting on higher yields.

Mike Khouw suggested an iron condor strategy in TLT. He wants to sell the November $143/138 put spread and the November $151/$156 call spread for a total credit of $1.89. If the stock stays in a range between $143 and $151 at the November expiration, Khouw is going to make money. He starts to lose money above $152.89 and below $141.11, and he can maximally lose $3.11.