In today’s segment Tom Sosnoff and Tony Battista breakdown the recent report from Janus Capital, headed by Bill Gross. While Tom and Tony agree with the premise of being short bonds in the current market climate. They ultimately disagree that you would ever need to give your money to funds like Janus.
Looking a little deeper into the Janus reports the boys notice the writing, and the way their options positions are described, sounds a lot like tastytrade language.
Janus’ positions around both the German bund and U.S. treasuries are essentially short strangles, with skews in delta based on there assumptions, something any tastytrader can replicate. Tom points out that the position sizing and use of derivatives are exactly what we do here at tastytrade, and it’s all something you can do yourself, without paying a fund manager.