Huge Spread Targets Treasury Fund

The TLT Treasury exchange-traded fund is falling again today while the unusual options volume is dominated by a very large option spread.

The iShares Barclays 20+ Year Treasury Bond Fund is down 0.97 percent to $122.49. It has been trending downward with lower highs and lower lows since hitting an all-time high of $132.22 at the end of July. Shares tested support at $118 a month ago.

The fund’s inverse correlation with the S&P 500 remains intact, but at -0.55 it is at the lower end of the range and well below levels as high as -0.95 at the start of the month.

More than 103,000 TLT options have changed hands today, compared with a daily average of 16,500, according to optionMONSTER’s systems. Puts make up more than 92,000 of that volume.

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