Market Measures

Monday – Friday | 9:00 – 9:20a CT


Yield Curve Setups Using ETFs

Market Measures

Options involve risk and are not suitable for all investors. Please read before deciding to invest in options.

With the spread between the longer duration yield and shorter duration yields flattening comparably to 2007, Tom and Tony look for opportunities to trade the yield curve.

Things to keep in mind when trading the curve:

  • Yields and prices go in opposite directions
  • TLT is a 20+ year bond ETF
  • IEF is a 7-year bond ETF
  • Futures are another outlet to trade the curve
Trade example:

Shorting TLT is one method of making the assumption that the 20-year yield will increase. If IEF has an IV of 4 while TLT has an IV of 11, we want to have 2.5X more IEF than TLT. Since IEF is less liquid, we could get long IEF and simply sell the appropriate amount of calls in TLT.

Tune in as Tom and Tony break down these products in detail and explain management of yield curve positions via ETFs.

Market Measures More installments

See All »

Latest doublerainbow Videos As of December 29

Most Shared From the last 30 days

Connect with your social account

Connect with your social account

Top Links

day trading crude oil futures day trading crude oil futures bear call spread payoff crude oil cl option credit spreads explained trading cl futures crude oil options prices meaning of brent crude call debit spread option credit spreads explained bullish vertical spread bull call spread vs bull put spread credit spreads for dummies