EUROPE SUMMARY: Eyeing Rate Cuts

With the ECB appearing to open the door to near-term rate cuts as a possible instrument in the coming meetings, we saw ERH1 100.50 puts sold at 7.5 in 15k (w underlying at 100.485 and with OI just 2k coming into the session, this block appears to be anew a new position). Likewise saw LF1 100.00/100.125 call spread bought for 2.25 in 4k, potentially targeting BOE rate cuts in sympathy.

Other flow today included:

• 0RZ0/3RZ0 100.50 call calendar, sells the 1Y at 4.25-4 in 5k
• 0RZ0 100.625 call sold at 1.5 in 3k
• 0RH1 100.625 call sold at 3.5 in 5k
• 0RH1 100.75 call bought for 1.25 in 3k
• 0RH1 100.50/100.375 put spread sold at 1.25 in 5k
• 3RZ0 100.50/100.625 call spread v ERZ0 100.50/100.625 call spread sold at 0.25 in 4k (-blue, +front)
• LZ0 100.00/100.125 call spread bought for 0.75 in 3k
• 0RZ0 100.50/100.625/100.75 call fly bought for 6 in 3k
• DUZ0 112.40/112.30/112.20 put fly bought for 2 in 3k