EUROPE OPTIONS: Huge Short-Sterling Trade Caps Dovish Week

Befitting the end of a week in which 'no deal' Brexit returned to the forefront, we saw one of the biggest options trades of the year in Short-Sterling, encompassing nearly 500k contracts in total: LZ0 100.00/100.125cs 1x2 with LG1 100.12/100.25cs 1x1.5, bought for 2.5 in 87k all day.

The theme was largely upside, in keeping with the recent theme of potential UK rate cuts, though to be fair we also saw some downside expressed: LH1 99.875p, bought for 2.25 in 10k, and LM1 100.00/99.875/99.75p fly 1x3x2, bought for 3 in 10.5k.

Other options flow included:

• OEX0 135.50 c, sold at 2.5 in 10k
• OEV0 134.50p, sold at 4.75 in 2.5k
• ERM1 100.62/100.75cs, bought for 1.5 in 10k
• ERH1 100.625 call bought for 1.25 in 5k
• LH1 99.875p, bought for 2.5 in 6k (Ref 99.995)
• LH1 100.00/100.125/100.25 c fly, bought for 2 in 6k total
• LH1 100.25/100.375 cs, bought for 0.75 in 4.4k
  
• LH1 100.00/100.125 call spread v LF1 100.00/100.125 call spread, bought for 0.5 in 4k (+March)
• 0LG1 100.00/99.875/99.75 put 1x3x2, bought the wings for 1 in 4k