The Best of Kass

Tickers in this article: SPY TBT

Here's how I'm positioned on my bond trade.

Apparently a lot of subscribers don't understand my small short bond position.

Let me explain.

I am short ProShares UltraShort 20+ Year Treasury (TBT) common, but against it, I am short more TBT puts. This creates a net delta equivalent long TBT position.

What I am doing is taking in premium on my TBT put shorts -- that's equivalent to a long TBT position -- against the TBT common short.

Capiche?

At the time of publication, Kass was short TBT common and puts.