TLT Short Put — Nov 20, 2026
Trade Setup
Current Stock Price
$42.00
Entry Price
$42.00
Target Price
$21.00
Stop Loss
$84.00
Expiration
Nov 20, 2026
Suggested Contracts
1
Strike Details
Sell 73P
Risk / Reward
Max Loss
$7258.00
Max Profit
$42.00
Analysis
TLT (iShares 20+ Year Treasury Bond ETF) presents a short put opportunity with very elevated implied volatility. IV Rank 94. IV 1800.0% trades 789.0pp above 30-day HV (1011.0%). This setup favors net premium sellers.
Sell the $73 put for $0.42 credit. Naked single-leg exposure; collect premium from time decay if TLT stays above the strike. Underlying ~$83.00, 50 DTE. Max profit $42 per contract, max loss $7258, 0.6% return on risk, 85% POP. Breakeven at $72.58.
Management: take profit at ~50% of max profit ($21). Cut at 2x credit ($84 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 @ ~$83.00 Expiration: Nov 20, 2026 (50 DTE) Net credit (entry): ~$42.00 per spread Legs:
- Sell TLT Nov 20, 2026 $73 Put (delta -0.15, mid $0.42)
Use limit orders at the mid or slightly worse. Verify bid-ask spread (currently ~4.8% of mid) before sending.
Management Plan
Take profit at 50% of max profit ($21). Cut loss if position reaches 2x credit received ($84 loss). Roll if tested with > 14 DTE remaining.