Markets never move in one direction, there will always be ebbs and flow.

At this time bond sentiment is very poor which makes it a great buying opportunity. Since timing the short term bounce is difficult there is a better way through the options market.

Trade details:

Sell to open the May 20, 2022 $121 put on iShares 20+ Year Treasury Bond Fund (TLT) for $2.30 or better.

You are paid 1.9% upfront for agreeing to buy shares at $121.

At expiration if shares are above $121: put sellers keep the $2.30 free and clear for a 30.2% annualized return.

At expiration if shares are below $121: put sellers buy shares at $121 for an adjusted cost basis of $118.7. Then you can sell covered calls to collect more income.

Use a stop loss of 15% below adjusted cost basis at $100.9.

Bonds are due for a rally and it is a good idea to collect cash today.

Disclosure: I wrote this article myself, and it expresses my own opinions. I have no business relationship with any company whose stock is mentioned in this article. The information provided should NOT be considered advice. The topics discussed are risky and have the potential to lose a substantial amount. I am not an investment professional and therefore do not offer individual financial advice. Please do your own research before investing.