EUROPE SUMMARY: Tug-Of-War Over UK Rates

Short-Sterling plays in both directions once again today. On the downside, looking for a BoE hold over the next year, we saw the return of LU1 99.875/99.625ps, bought for 3 in 36k (ref 100.04, 10 del). That's 237k total in the last 2 days. But we also saw upside in size today. One was LM1 100.50/100.625cs, bought for half in 27.25k (Ref 100.01, 2 del); not to mention straight-up calls, in LM1 100.50c, bought for 0.75 in 40k (ref 100.01, 6del). Other options flow included:

• OEX0 135.00/134.50ps, bought for 9.5 in 2.5k to sell DUX0 112.30 p at 4.5 in 2.5k
• DUZ0 112.50/90cs 1x2, sold at 1.5 in 2k
• RXX0 173.50/172.50/172.00 broken p fly, bought for 15 in 3.5k
• RXX0 172.50 p for 19/20 in 7.5k (ref 174.47/81)
• RXX0 175.00/176.00 c/s (bought) vs 172.50 put (sold), net paid 7 in 3.1k
• LZ0 99.87/100.00cs, sold at 4.75 in 2.5k
• LH1 100.25/100.375 c/s bought for 0.75 in 5k (v 100.01, 2d)
• 0LX0 with 0LZ0 100.12/100.25cs strip, bought for 4.5 in 5k (ref 100.04, 36 del)
• LM1 100.00/12/25/37c condor, bought for 2.75 in 6k (Ref 99.995, 11 del)
• 0LG1 100.125/100.375/100.625 call fly bought for 3.25 in 10k
• LU1+LZ1 100.00^ strip sold at 47.5 in 1.5k