Options Traders Stack Up Record Bullish Bets on Major Bond ETFs
- TLT, LQD call option interest is hovering near all-time highs
- Risk-reward is more two-directional after selloff: Samana
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Exchange-traded fund investors are preparing for the possibility that peak bond pain has passed.
Open interest for bullish call contracts is close to an all-time high for the $24 billion iShares 20+ Year Treasury Bond ETF (ticker TLT), while the fund’s put-call ratio is at the lowest since 2003. It’s a similar story for the $32 billion iShares iBoxx $ Investment Grade Corporate Bond ETF (LQD), where call open interest is also hovering near record highs while the ratio of bearish puts to calls has dropped to the lowest level in a year.