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BoE Cut Trades This Week

SHORT-STERLING OPTIONS

Had a client query about the most significant Short-Sterling trades this week that point to a BoE rate cut. In our view, they are as follows, with the following outright calls, and upside structures. (There were many others but in smaller size.)

  • LH1 100.125 call bought for 1.75 in 7.5k
  • LM1 100.25 call bought for 2.5 in 50k
  • LM1 100.12/100.25/100.37c fly, bought for 1.5 in circa 10k
  • LM1 100.125/100.25cs x2 vs 100.00p, bought the cs for 1.25 in 30k x 15k

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