TLT TLT options offer highly liquid exposure to long-duration U.S. Treasury bonds with strong rate sensitivity, macro trading opportunities, and portfolio hedging utility.

TLT is the premier vehicle for trading interest rate expectations via options. FOMC decisions, CPI data, and yield curve dynamics create regular catalysts.

TLT Options Characteristics

Avg Daily Volume

500K+ contracts

Typical Spread

$0.01-0.03

Typical IV Rank

20-40%

Expirations

Weekly, Monthly, Quarterly, LEAPS

Price Range

$85-105

Correlation

Inverse correlation with interest rates, moderate with equities

Best Strategies for TLT

Straddles (FOMC)

Capture rate decision moves

Bull Call Spreads

Rate cut thesis with defined risk

Iron Condors

Range-bound income between data releases

Calendar Spreads

Trade CPI/FOMC term structure

Protective Calls

Hedge equity portfolio with bond calls

The Rate Trade

TLT options are essential for macro traders. Every FOMC meeting, CPI release, and jobs report creates IV events. TLT calls are natural equity hedges during flight-to-quality episodes.

TLT Options FAQ

How do I use TLT options to trade rates?

Buy TLT calls if you expect rate cuts (bonds rise). Buy TLT puts if you expect rate hikes (bonds fall). Straddles around FOMC meetings capture the move regardless of direction. IV spikes before rate decisions.

Can TLT options hedge my stock portfolio?

Yes. During equity selloffs, bonds often rally (flight to quality). TLT calls act as equity hedges. However, in rising-rate environments, both stocks and bonds can fall simultaneously — the correlation isn't always negative.