/EUROPE SUMMARY: Short-Sterling is where....>

OPTIONS: /EUROPE SUMMARY: Short-Sterling is where the action has been today,

again, alongside futures increasingly pricing in the BoE adopting negative rate

policy. Like last few days, saw more par calls trade (LV0 100.00 calls, bought

for 2.5 in 20k and sold at 2.25 in 3k, and 0LZ0 100.00 calls sold at 8.5 in 2k)

and sizeable sale of puts just below par (LZ0 99.875 puts sold at 4 in 28,888).

- Also of interest was additions to a Sterling bear flattener position: LZ0/0LZ0

99.875/99.75 put spread, bought the front for 0.75 in 6.5k (a desk contact noted

this was bought for 1 yesterday, 17.5k all week).

** Euribor options flow included:

* ERZ0 100.50c, bought for 2 in 4k

* ERM2 100.50^ bought for 26.75 in 2k

** Short sterling option flow included:

* 0LZ0 100.25/100.37cs vs 99.62p, bought for half in 7k (ref 100.01)

* 0LZ0 100.25/100.50cs, bought for 1.75 in 5k

* LF1 99.87/100/100.12c fly, bought for 2.75 in 4k

* LF1/LH1 100.00 call calendar bought for 1.25 in 2.5k