According to CNBC, options trading in the iShares 20+ Year Treasury Bond ETF (TLT) turned heavily bullish Wednesday, with call volume about 50% above the 30-day average and traders buying nearly 370,000 calls versus fewer than 100,000 puts. The most active trade in the monthly Oct. 30 expiry was the 82-strike call, which traded about 16,000 times and would profit if long bonds recover losses since Sep. 22, when TLT fell 6% and the 30-year yield rose above 5.6%. A buyer spent at least $250,000 on 25,000 of the 82-strike calls expiring Oct. 16 and Oct. 30, plus 5,000 of the 80-strike calls expiring Oct. 30, shortly before a 10-year note auction that helped spark a rally in bonds. Jim Perry, founder and chief investment officer of Perry International Capital Partners, said demand at the auction was very strong and added that yields may be topping out. He also said he would rather own stocks because they would outperform bonds if yields fall. The article said another test comes with the 30-year bond auction at 1 p.m. ET, and noted that utilities have also seen more optimistic options trading, including $1 million of put selling in the XLU ETF on Friday.