Turning to the calls side of the option chain, the call contract at the $112.00 strike price has a current bid of $2.89. If an investor was to purchase shares of TLT stock at the current price level of $103.51/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $112.00. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 10.99% if the stock gets called away at the January 2016 expiration (before broker commissions). Of course, a lot of upside could potentially be left on the table if TLT shares really soar, which is why looking at the trailing twelve month trading history for iShares Barclays 20+ Year Treasury Bond Fund, as well as studying the business fundamentals becomes important. Below is a chart showing TLT's trailing twelve month trading history, with the $112.00 strike highlighted in red:
January 2016 Options Now Available For IShares Barclays 20+ Year Treasury Bond Fund (TLT)
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