Bonds Crashing. Here is the Trade

Bonds Crashing. Here is the Trade

May 13, 2026 · 5 min

About this episode

Jamal discusses a short put trade on US Treasury bond futures amidst crashing bonds and rising rates.

Bonds are crashing and rates are going higher. That is not what the administration wants. And if you think bonds stay near the low end of their recent range, there is a simple short put trade that pays you $11 a day in theta to wait. Jamal walks through a live short put on the 108 strike of the US Treasury bond futures with 44 days to go. The bond is trading at 111-16, sitting at the very low end of its range. The 108 strike is about one standard deviation away, 18 deltas, 87% probability of profit, and $390 in max credit for roughly $2,700 in buying power. A bond point is worth $1,000 and each tick is $15.62, all explained live on the tastytrade platform.

People in this episode

Host: Jamal

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Organizations: US Treasury, tastytrade

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