Gundlach Recommends Closing Out His Trade That Returned 22% in a Month
- DoubleLine CIO pitched a put-call straddle on TLT at Sohn
- ‘If you put it on, taking it off now makes sense’: Gundlach
Jeffrey Gundlach
Photographer: Scott Eells/Bloomberg
This article is for subscribers only.
Jeffrey Gundlach is satisfied with the pitch he gave at the New York Sohn Investment Conference last month. Now, he’s advising investors take profits and close out the trade.
In early May, the co-founder and chief investment officer of DoubleLine Capital LP said interest-rate volatility could not possibly remain as low as it’s been the past eight years. To turn a profit, he recommended investors employ a put-call straddle on the iShares 20+ Year Treasury Bond ETF, known by its ticker TLT. In a tweet late Wednesday, he said it’s time to cash out.