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Puts Lead Volume Surge

US TSYS
Option volumes surged Thursday, better put flow on net as Tsys opened weaker, adding to Wed's post-FOMC action after Chairman Powell's hawkish rebuttal to the expected 75bp rate hike.
  • Broad based downside positioning as short end rates resumed gradually pricing in an unprecedented fifth 75bp hike in December. One 12-leg strip had paper selling 5,000 SFRH3/SFRM3/SFRU3 94.87/95.25/95.50/95.87 put condors for a total of 25.0. Other longer plays rolled out (expiry) and down (in strike) such as buyer of 10Y option package: TYZ 109/TYH 107 put spds, 24 March over.

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