Options traders in the TLT (iShares 20+ Year Treasury Bond ETF) bought more than 175,000 calls on Tuesday against fewer than 40,000 puts, showing marked bullish sentiment toward long-duration bonds. One trader spent $1 million to buy 10,000 calls at the 85 strike expiring November 20 as part of a bullish call spread offering maximum profit 8% higher. TLT gained 0.9% Tuesday to reach $83.30, its highest level since July 29. This week features the release of the Fed’s preferred PCE inflation gauge, Nvidia earnings, and the Jackson Hole Economic Policy Symposium.
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