Bond bonanza and imploded equity volatility

TLT upside mania

What a difference a month makes. We outlined the contrarian TLT logic on October 23, in our post Dare the TLT? The world's most hated asset back then has reversed and we are trading above the 100 day for the first time since May. The "easy" part of the trade is behind us. For the ones that enjoyed the move, consider switching into call spreads, the VXTLT has come down a lot (chart 2), offering relatively cheap options plays.