TLT options basics
iShares 20+ Year Treasury Bond ETF trades as TLT on NYSE Arca, and its listed options are American style with a standard multiplier of 100 shares per contract. Type TLT's current price and the calculator prices every contract with the American model you select. When a TLT option chain is available it loads on its own, and implied volatility is solved from each contract's bid and ask midpoint.
Because iShares 20+ Year Treasury Bond ETF has historically paid a cash distribution, enter the next dividend and ex dividend date under “Rates, dividends and costs” to check whether short TLT calls in your position are likely to be assigned early.
Popular TLT option strategies
Long Call
Covered Call
Cash Secured Put
Bull Call Spread
Iron Condor
Long Straddle
Protective Put
Poor Man's Covered Call
TLT options FAQ
Are TLT options American or European style?
TLT options are American style, like all listed options on US stocks and ETFs. The holder can exercise any business day before expiration, so the calculator prices them with American models and flags early assignment risk on short legs.
Can TLT options be assigned early?
Yes. iShares 20+ Year Treasury Bond ETF has historically paid a cash distribution, so in the money TLT calls are most at risk of early assignment the day before an ex dividend date, when the dividend exceeds the call's remaining time value. Deep in the money puts can also be assigned early.
How do I calculate profit on a TLT option?
Load TLT in the calculator above, pick a strategy such as a long call or covered call, and adjust the strike and expiration. The calculator shows profit and loss at expiration and at any earlier date, plus breakevens, max profit, max loss and the chance of profit using TLT's implied volatility.
Educational tool, not financial advice. Calculations are theoretical and depend on your inputs; real fills, fees, early assignment and dividends can change results. Options involve risk and are not suitable for every investor.