TLT and bond premium selling shows improved metrics in 2025 compared to the past decade, despite historically low implied volatility. While bond ETFs typically trade at a volatility discount to the S&P 500, this year's TLT environment has yielded better results for premium sellers.

Data shows 2025 bond trading has delivered triple the average profit, 13% higher premium relative to buying power, and significantly reduced maximum losses compared to the 10-year historical average. Price volatility has decreased dramatically to just 2% in 2025 versus the 10-year average of 21%.

Despite these improvements, traders may still prefer alternative strategies like diagonal spreads or zebras due to capital efficiency concerns when dealing with TLT's relatively low implied volatility (currently around 12-13% with an IVR of 4).