July 18. I don’t know, I think it’s C-O-O

–In the new world of the 20 minute news cycle, Turkey had a coup on Friday, now forgotten as it failed.  In an amusing sidenote cited by the Daily Shot, google searches for “coup” jumped on Friday, but so did searches for “coo”.  That’s right kids….sound it out.  In the US there was another deadly attack on  police officers in Baton Rouge. In Cleveland naked women protested the beginning of the Republican convention, which I personally prefer as a means of demonstration, (within reason) though there are risks that it could be taken up a notch.

–For the first time in a while I heard that some midcurve puts were abandoned Friday.  EDU8 settled 9886.5, meaning 2EN 9887.5 puts were auto exercised, but an immediate rally on the start of the Turkish coup attempt sent futures higher to 9889 and caused abandonment.  I am not sure of quantity, but interesting in terms of expiration risks.

–Inflation data perking up in the US as evidenced by PPI and CPI data last week.  Note that prices for shelter (rents/primary residence) are increasing at an annual rate of over 3%.  On the other hand, the Chinese yuan is 6.7012 this morning, a new high in the USD vs China, and a disinflationary signal for goods as opposed to service
–Eurodollar calendar spreads closed on a strong note (at settlement time) with EDZ16/EDZ17 settling 19.0. though printing 17.5 this morning.  August treasury options expire Friday.

 

Posted on July 18, 2016 at 5:34 am by alexmanzara · Permalink
In: Eurodollar Options

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