ProShares UltraPro Short 20 Year Treasury (TTT) Covered Calls

The ProShares UltraPro Short 20+ Year Treasury (TTT) is a leveraged inverse exchange-traded fund that seeks daily investment results corresponding to three times the inverse (-3x) of the daily performance of the ICE U.S. Treasury 20+ Year Bond Index. The fund is designed to profit from declines in the prices of long-term U.S. Treasury bonds, which typically occur when interest rates rise. TTT is intended for short-term trading and tactical hedging purposes.

You can sell covered calls on ProShares UltraPro Short 20 Year Treasury to lower risk and earn monthly income. Born To Sell's covered call screener gives you customized search capabilities across all possible covered calls but here are a couple of examples for TTT (prices last updated Mon 4:16 PM ET):

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Core Business and Products

The ProShares UltraPro Short 20+ Year Treasury (TTT) is a specialized financial instrument designed for sophisticated investors who wish to take a bearish stance on the long end of the U.S. Treasury yield curve. The fund seeks to provide -3x the daily return of the ICE U.S. Treasury 20+ Year Bond Index. To achieve this, TTT utilizes a variety of derivative instruments, including swap agreements and futures contracts, which allow the fund to gain leveraged inverse exposure without the need to short individual bonds directly.

Because the fund resets its exposure daily, its performance over periods longer than a single day is the result of the compounded daily returns of its underlying index. This "compounding effect" means that in volatile or sideways markets, the fund may lose value even if the long-term direction of bond prices is down. Therefore, TTT is primarily used as a tactical tool for day trading or short-term hedging against rising interest rates, rather than a "buy and hold" investment for a traditional portfolio.

Competitive Landscape

TTT operates in a niche market for leveraged and inverse fixed-income products. Its most direct benchmark competitor is the Direxion Daily 20+ Year Treasury Bear 3X Shares, which also offers triple inverse exposure to long-term Treasuries. For investors seeking a less aggressive bearish position, the ProShares UltraShort 20+ Year Treasury provides -2x daily leverage. These funds compete primarily on liquidity, tracking precision, and expense ratios.

The fund also acts as a direct inverse to the iShares 20+ Year Treasury Bond ETF, which is the most widely traded long-duration bond fund. Traders often move between TLT and TTT to express views on Federal Reserve policy changes or shifts in inflation expectations. Differentiation in this space is driven by the specific derivative mix used by the fund managers to minimize "slippage" during daily rebalancing, ensuring the fund remains as close to its -3x target as possible.

Strategic Outlook and Innovation

The strategic outlook for TTT is entirely dependent on the trajectory of long-term interest rates and the health of the U.S. economy. In an environment of persistent inflation or tightening monetary policy, TTT serves as an aggressive way to capitalize on surging yields. Conversely, if the economy enters a recession and safe-haven demand drives bond prices up, the fund can experience rapid and significant losses. The management team focuses on maintaining deep liquidity in the underlying swap and futures markets to ensure that large institutional trades can be executed without moving the market price.

Innovation in this sector involves the constant refinement of rebalancing algorithms to handle high-volatility events. ProShares employs sophisticated risk management protocols to monitor collateral and counterparty risk associated with the swaps used to generate leverage. As the treasury market becomes increasingly electronic, the speed and efficiency of these rebalancing trades continue to improve. This operational excellence is critical for maintaining the fund's structural integrity, allowing it to function as a reliable "volatility-linked" instrument for traders navigating complex interest rate environments.

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