TLT Credit Put Spread (Bull Put) — Sep 18, 2026
Trade Setup
Current Stock Price
$82.25
Entry Price
$30.00
Target Price
$15.00
Stop Loss
$60.00
Expiration
Sep 18, 2026
Suggested Contracts
1
Strike Details
Sell 78P / Buy 73P
Risk / Reward
Max Loss
$470.00
Max Profit
$30.00
Analysis
TLT (iShares 20+ Year Treasury Bond ETF) presents a credit put spread (bull put) opportunity with elevated implied volatility. IV Rank 51. IV 1145.0% trades 423.0pp above 30-day HV (722.0%). This setup favors net premium sellers.
Sell the $78 put and buy the $73 put for protection. Bullish setup — profits if TLT stays above $78 at expiration. Defined risk equal to the spread width minus credit collected. Underlying ~$82.25, 49 DTE. Max profit $30 per contract, max loss $470, 6.4% return on risk, 83% POP. Breakeven at $77.70.
Management: take profit at ~50% of max profit ($15). Cut at 2x credit ($60 loss). If short strike is breached with > 14 DTE, consider rolling out for a credit. Close before expiration week to avoid gamma risk.
Setup Instructions
Underlying: TLT @ ~$82.25 Expiration: Sep 18, 2026 (49 DTE) Net credit (entry): ~$30.00 per spread Legs:
- Sell TLT Sep 18, 2026 $78 Put (delta -0.17, mid $0.40)
- Buy TLT Sep 18, 2026 $73 Put (delta -0.04, mid $0.10)
Use limit orders at the mid or slightly worse. Verify bid-ask spread (currently ~2.5% of mid) before sending.
Management Plan
Take profit at 50% of max profit ($15). Cut loss if position reaches 2x credit received ($60 loss). Roll if tested with > 14 DTE remaining.