In my opinion Treasuries are set to potentially move higher. Fundamentals point to lower yields as the Fed backs off the tightening they did through 2018, weak home sales also can potentially slow up the economy, also the Fed will potentially ease up on quantitative tightening. I am looking for the 10y future to potentially rally toward 124.00
I suggest buying the 10y MARCH 122.50 Call costing 30/64ths = $468.75 of quantifiable risk plus fees and associated costs per transaction to enter the trade.
Also the 10y MARCH 123.00 Call cost 23/64ths = $359.375 of quantifiable risk plus fees and associated costs per transaction to enter the trade.
For a contrarian view and to have downside protection consider the 120.00 Put costing 17/64ths = $265.625 of quantifiable risk plus fees and associated costs per transaction to enter the trade.
You can also buy the 120.00/123.00 strangle costing 40/64ths = $625.00 of quantifiable risk plus fees and associated costs per transaction to enter the trade.
THE MARCH 10Y OPTIONS EXPIRE 2/22/2019 UNDERLYING FUTURES ARE THE MARCH 10Y NOTE
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