With volatility in markets perceived as low evident by the low Vix and with FEDs being on the move and almost 100% rate cut in July, some of the ideas being tossed around is buying cheap, due to low Vix, strangle on bond ETFs such at TLT or TMF.
The idea make sense in theory but to execute it right means buying options way out there 6-12 months out. The price of these options however becomes high enough to deplete any possible gain to be made in them. One might make money if a direction is known, up or down slicing the option cost by half. But if one wants to buy 6+ months out strangles and has to spend $10 on them, that is what TLT would move probably that $10-$15 so spending $10 in the hope of making $5 is not a great risk reward trade. Spending $5 to make $15 makes some sense. The idea is pretty decent however. Finding the right angle is the challenge.