This strategy is return-based with unlimited risk, relying on margin - Traditional Options on IBKR.
Trade Updates:
Jan 28: Up 0.48%.Nothing to do here. Letting it run to expiry.
Jan 26th: Up 0.59%. Nothing to do here. Letting it run to expiry.
Jan 23rd: Up 0.48%. Nothing to do. We continue to let the trade run to expiry. Jan 22nd Trade Update: TLT (Bond ETF) TLT has rallied strongly in the first 24 hours! We are already up 0.3% ROI on the position. We are holding to expiry to capture the full 1.0% portfolio yield for this 30-day trade.
Original Trade information:
See video below of trade explanation. Watch from about 1 minute 50 seconds into this video.
I. Setup & Rationale
Trade Date: Jan 21st 2026
Underlying Ticker: TLT - US 20 year treasury yield tracker
TLT Price at time of trade: $86.75
Market Outlook: Strong Bullish/Neutral - A significant drop is not expected.
Goal of Trade: Maximum Premium Income / Return on Margin (RoM)
Probability of Profit (PoP): 71% (this is the main attraction of the strategy)
II. The Trade Details
Action: Sell to Open (STO) 1 Naked Put Option
Strike Price: $86
Expiration Date (DTE): Feb 20th 2026
Premium Collected: $0.85 per share
Total Premium Collected per contract: $85
III. Risk & Profit Metrics
Maximum Profit: (The credit collected) $857
Breakeven Price: $85.15 (We need the stock price to remain above to price at EXPIRATION to make a profit)
Initial Margin Required: $1,600 (But this depends on numerous factors such as your account size and other positions in your account).
Potential Loss: unlimited...losses continue to increase as the share price falls further below break even.
IV. Trade Management & Exit Plan
Take Profit: Leave expire worthless.
Trade Mgt (Critical): None. Happy to take assignment of TLT if this occurs as it pays an annual dividend of just under 4%. Our plan will be to sell the ETF if the share price reaches $90 again after assignment.
📞 Strategy Call Assistance
If you require assistance with trade setup, risk management, or strategy review, please schedule a strategy call.
PREMIUM Plan Members: Strategy calls are included in your plan.
All Other Members: Strategy calls can be scheduled at a rate of €100 per half hour.
