Free Trial

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)

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.