Squared Conversation
Timestamps
What Happened Last Week – 00:10
What’s Happening Next Week – 9:13
Squared Portfolio Update
Squared Comments
Squared Conversation
Timestamps
What Happened Last Week – 00:10
What’s Happening Next Week – 9:13
Squared Portfolio Update
Squared Comments
3 Responses
Question on option management. My understanding is that the 20 TLT options are 100 units per contract, and if we’re selling calls with $100 strike we’re taking on $200K in potential risk. Should these get exercised ITM prior to expiry, how do you expect to manage these? Curious to better understand how you view the the risk. Note I’ve understood that you don’t expect TLT to exceed $100. Just curious to understand how we’d manage if it does.
Then a question on SLQD. Are we choosing for SLQD over USFR because we think some duration (~2 years avg) may have upside in a weak data scenario where Fed cuts more aggressively?
There is very little risk because we own IEF too. The 10s-30s would have to do something extraordinary for us to have any risk at all. And the odds are as close to zero as I really am not worried. I think next 2 weeks are a frustrating bore.
Appreciate the analysis and guidance.
There is relief in knowing you see a frustrating bore, and my job is to wait for further guidance.
Thx.