More on the Treasury bubble trade (and don’t forget this week’s Live Q&A Chat)

I’m getting ready for this week’s Live Q&A Chat at http://tradingwithcody.com/chat at 2pm EST today. You can also just email me your question to support@tradingwithcody.com.

My editor at the WSJ asked me a question this morning about how best to trade on this Treasury Bubble Popping idea I wrote up yesterday.

I bought puts on the IEF, which mirrors Treasuries. Alternatively, you could also look to buy one of the ETFs that are supposed to move opposite of the Treasury Rates, such as the TBT. The problem with that approach is simply that you’re adding the complexity/hope that the guys running that ETF can successfully figure out how to stay inversely set up in their positions. I’d rather just buy puts or short an ETF that’s buying straight Treasuries.