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Morgan Stanley Recommend Long RXM4 131.00/132.50/134.00/135.50 Call Condor

EGB OPTIONS
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Late on Friday Morgan Stabley recommend going long the RXM4 131.00/132.50/134.00/135.50 call condor.

  • They noted that their “10-Year Bund valuation gap has widened to 2 z scores, one of the cheapest valuations over the last 3 years.”
  • They also believe that the odds of a “further sell-off seems capped considering the repricing at the front end.”
  • Although they warn that “the continuation of stronger-than-expected data or higher inflation readings could erode the premium paid before the expiry.”
  • A reminder that we saw decent sized buying of the RXM4 131.00/132.50/134.00/135.50 call condor on Thursday and Friday of last week.
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Late on Friday Morgan Stabley recommend going long the RXM4 131.00/132.50/134.00/135.50 call condor.

  • They noted that their “10-Year Bund valuation gap has widened to 2 z scores, one of the cheapest valuations over the last 3 years.”
  • They also believe that the odds of a “further sell-off seems capped considering the repricing at the front end.”
  • Although they warn that “the continuation of stronger-than-expected data or higher inflation readings could erode the premium paid before the expiry.”
  • A reminder that we saw decent sized buying of the RXM4 131.00/132.50/134.00/135.50 call condor on Thursday and Friday of last week.