EUROPE SUMMARY: Upside Targeted In Bunds, Short Sterling

A few trades of note today, mainly in the EGB space.

• RXX0 177.00/179.00/181.00 call fly bought for 11 in 1k. This looks a new position (almost no open interest coming into the session), with a desk noting that this targets 179.00 in RXZ0, i.e. a fall in Bund yields of 35bps towards the -0.80% area (which we last saw in early March).
• DUU0 112.00/112.10/112.20/112.30 call condor sold at 3.75 in 10k (-5k at 3.5, -5k at 4). A desk contact notes that there are accounts long the 112.00/112.20 Schatz c/s in size, as such this could be a profit take/roll ahead of this Friday's expiry for Sep EGB options contracts.
• RXU0 177.00/177.50 1x2 call spread bought for 3 in 2k. Also a Friday expiry, this targets the 177.50 area seen as recently as last Tuesday (with RXU0 currently at 176.30, first comes resistance at 176.60/176.62 as identified by our tech analyst).
• LM1 100.00/100.125/100.25/100.375 call condor bought for up to 2.5 in 19k (15k and 4k clips). Buying upside in size, targeting negative UK rates.

Other trades included:

• 2RZ0 100.625 call v 2RH1 100.75 call sold at flat in 3k total (in terms of the Dec)
• 2RZ0 100.50/100.375 combo sold at flat in 1.5k (v 100.44) - (sold the put)
• ERU0 100.37/100.50/100.625 call fly sold at 9 in 1k
• ERU0 100.25 put bought for 0.25 in 3k
• 0RX0 100.50 straddle sold at 8 in 0.5k