### POV, Super-sizing the........>

US EURODLR OPTIONS: ### POV, Super-sizing the large put spds trading in pit

(w/more recent Blocks adding), has account rolling out and down a massive

existing position.

* -150,000 short Dec 80/81 put spds, 6.0 (separate blocks earlier/bought at 6.5)

* +75,000 Jun 78/81 put spds, 5.0

* +75,000 Sep 77/80 put spds, 5.5 

Note, Dec 1Y midcurve puts (short Dec or EOZ) expire the same time as front EDZ7

but use the Red Dec'18 futures as it's underlying hedge. The short Dec 80 put

holds largest open interest (OI) at 834,697 coming into the session, the 81 put

OI second largest at 529,126. One shop bought appr 200k of the EOZ 80/81 put

spds from August 7-15 from 3.25 to 2.75 when Dec8 futures were trading around

98.27-98.30. With Dec rate hike looking increasingly likely (84.9%) and 2018

sector of Eurodollar futures zeroing in on another .25bp hike every quarter

(Mar'18 probability up to 42.4%, June at 23.0%) those with the conviction (and

benefit of buying the EOZ spd much cheaper) are rolling out and down looking to

ride the Fed train to higher rates.