Today I opened my first 10 year treasury bond short strangle (/ZN). I don’t have much experience with this instrument as of yet, so I’m basically jumping in head first. That’s how you learn quickly, right?
I have gathered my findings in my treasuries trading guide, and will update it constantly, as I learn new things about this market.
The details of this trade are as follows:
This is a high probability trade with low deltas, so I had to sell 4 batches contracts on each side, to make it worth it. Even like this, the initial margin is just $3,033. The bad part is that I needed to sell 8 contracts, which increased commissions.
/ZN has been in a very nice range for quite a while, basically over a year.