### POV, FADING POST FOMC RATE...>

US EURODLR OPTIONS: ### POV, FADING POST FOMC RATE RALLY

- Discerning what major market hedgers have been doing since the last NFP has

been exceedingly aggravating. Much like summer doldrums, trade has lacked a

certain amount of conviction for one reason or another (but usually associated

with uncertainty over global trade, slowing global economies, Brexit, etc..).

Meanwhile, volumes have been dwindling for weeks as liquidity providers hit the

sidelines.

- Thankfully not the case today. While exogenous risk factors remain, at least a

dovish-toned Fed is in the rear view mirror, drawing many off the sidelines as

they weigh the prospect of waning economic growth vs. further monetary

accommodation.

- Taking advantage of the drop in implied vol, Eurodollar put option volumes

have spiked (ex: +30k Dec 71/72/75 broken put flys, +30k Dec 71/72/73/75 put

condors) as accounts look to fade the rate rally as equities surge -- accepting

the invitation to "chase riskier returns". No telling how long the activity will

last, but it's good to see some counter-market trade coming back to play.