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EUROPE SUMMARY: Gunning For UK Rate Cuts

OPTIONS

The main theme today - perhaps unsurprisingly given the mounting dispute over the UK / EU Withdrawal Agreement - was Short Sterling upside targeting BoE rate cuts by Q1 2021.

This included: LZ0 99.87/100.00cs vs LH1 100/100.25/100.50c fly, sold the cs, receiving 0.5 in 8k (rolling position from Dec to Mar); also, in size, LM1 100.125/100.375cs 1x1.25, bought for 3.25 in 20k, and L Z0 99.875/100.00cs 1x2, bought for 2.75 in 16k (heard new position)/ LH1 99.87/100.00cs 1x2, bought the 2 for half in 5k.

Ahead of the ECB decision Thursday, saw ERU0 100.50c, bought for half in 8k. A large upside Schatz trade in late trade also noteworthy: DUZ0 112.30/112.50cs vs 112.10 p, bought for 4.5 in 20k.

Other options flow included:

  • RXX0 169.50p, bought for 10 in 3k
  • LH1 100.00/100.15/100.25c fly, bought for 2 in 2k
  • LF1 100.12c, bought for 2.5 in 20k (ref 99.98, 20 del)
  • LZ0 100c, bought for 2.5 in 19.5k (Ref 99.92, 27del)
BulletMarketsFixed Income Bullets
BulletMarketsFixed Income Bullets

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