Options traders continued to position for a potential rally in long-duration Treasurys on Tuesday, buying more than 175,000 calls on the iShares 20+ Year Treasury Bond ETF (TLT), compared with just under 40,000 puts, according to ThinkOrSwim data. One large trade involved buying 10,000 November 20 $85 calls for $1 million and selling 15,000 $90 calls expiring the same day for $375,000, creating a bullish call spread with a maximum payout at levels 8% above current prices and not seen since March. A rise in TLT would imply lower yields on longer-maturity government bonds, a potentially supportive backdrop for equities. TLT rose 0.9% to $83.30, its highest level since July 29, while the investment-grade corporate bond ETF LQD gained 0.5%. The positioning follows a near year-long rise in yields that pushed the 30-year Treasury yield to a 19-year high last week after Treasury Secretary Scott Bessent increased the government's bond buyback. The 10-year yield remains below its January 2025 peak and the 5% level it briefly exceeded in 2023. Investors face several major events ahead, including the release of the Federal Reserve's preferred inflation gauge, PCE, on Wednesday morning, Nvidia's earnings after the bell Wednesday and the start of the Jackson Hole Economic Policy Symposium on Thursday.