Let Me Explain
Originally published on Thursday, Jan. 17 at 9:43 a.m. EST. Here's how I'm positioned on my bond trade. Apparently a lot of subscribers don't understand my small short bond position. Let me explain. I am short ProShares UltraShort 20+ Year Treasury ( TBT) common, but against it, I am short more TBT puts. This creates a net delta equivalent long TBT position. What I am doing is taking in premium on my TBT put shorts -- that's equivalent to a long TBT position -- against the TBT common short. Capiche? At the time of publication, Kass was short TBT common and puts.