When and How is the Easiest/Low Cost way to short the Muni Market?

william the wie

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Nov 18, 2009
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With federal taxes down, jobs booming in the Red States (keeping taxes low) and blue state taxes rising due to net population loss and even to more tax base loss the vicious cycle will continue till the Blue Wall breaks. I would like to limit my positions to CA, IL and NJ and use LEAP puts at least three months out. Yeah it's a coin flip of as to whether these three or one of the other 12 Blue wall states will be the first to go under but these are the states most likely to be immediate collateral damage if some other state goes under.
 
With federal taxes down, jobs booming in the Red States (keeping taxes low) and blue state taxes rising due to net population loss and even to more tax base loss the vicious cycle will continue till the Blue Wall breaks. I would like to limit my positions to CA, IL and NJ and use LEAP puts at least three months out. Yeah it's a coin flip of as to whether these three or one of the other 12 Blue wall states will be the first to go under but these are the states most likely to be immediate collateral damage if some other state goes under.

I would like to limit my positions to CA, IL and NJ and use LEAP puts at least three months out.

LEAPs are 9 months or longer.

https://money.usnews.com/funds/etfs/municipal-bond
 

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