Investors in the iShares Trust – iShares 20+ Year Treasury Bond ETF (Symbol: TLT) began trading new options for June 2026 expiration this week. Key highlights include a put contract at the $86.00 strike price, currently bid at $4.60, and a call contract at the $88.00 strike price, currently bid at $4.40. The TLT ETF’s current share price is $87.24.
The $86.00 put contract offers a potential cost basis of $81.40 after premium, with a 54% chance of expiring worthless, which could yield a 5.35% return. Conversely, the $88.00 covered call would also have a 51% chance of expiring worthless, delivering a 5.04% boost in returns if successful. Implied volatility for the put is 15%, and for the call, it is 16%, compared to a trailing twelve-month volatility of 14%.
