Archive for the ‘Eurodollar Options’ Category

Nov 28. Powell – we can monitor financial stability as he speaks

–The event of the day will be Powell’s 12:00pm speech to the Economic Club of NY on ‘monitoring financial stability’.  When Dudley was the head of the NY Fed, financial conditions and stability were almost seen as a third mandate for the Fed, now perhaps less important as Powell frequently refers to ‘staying in our […]

Posted on November 28, 2018 at 4:55 am by alexmanzara · Permalink · Leave a comment
In: Eurodollar Options

Nov 27. Let’s Make a Deal

–Trump again threatened to slap increased tariffs on Chinese goods if no progress is made on a trade deal this weekend.  The market yawned.  What if, just hypothetically of course, the other side clandestinely  gained access to valuable information in The Art of the Deal and sees this gambit as a transparent bluster?  What if […]

Posted on November 27, 2018 at 5:21 am by alexmanzara · Permalink · Leave a comment
In: Eurodollar Options

Animal Spirits – going into hibernation

  I spent a lot of money on booze, birds and fast cars.  The rest I just squandered. –George Best.  Northern Irish footballer who played winger. It’s the thirteenth anniversary of George Best’s death.  I’ve always favored the quote above but there are a lot more.  It would be easy to get carried away and […]

Posted on November 25, 2018 at 8:31 am by alexmanzara · Permalink · Leave a comment
In: Eurodollar Options

Nov 22. TY adjustments going into TYZ option expiry

–Large trades in TY options Wednesday as December options expire on Friday.  Buying of TYZ 119c in size from 11 to 14, settled 18 vs 119-075, open interest declined by 72k but there were still 104k left.  TYF9 121c were bought for 12, settled 14 with an increase of just under 39k.  And TYG 121.5c […]

Posted on November 22, 2018 at 8:46 am by alexmanzara · Permalink · Leave a comment
In: Eurodollar Options

Nov 21. GETTING SCARY

–An eighth day in a row that TYZ settled higher, but just barely.  All eurodollar contracts settled slightly lower on the day despite weak equities (SPX -1.8%) and a renewed plunge in oil.  Around the time of futures settlement of rates, CLF9 was -3.90 at 53.30, which has been a breathtaking loss from the high […]

Posted on November 21, 2018 at 5:19 am by alexmanzara · Permalink · Leave a comment
In: Eurodollar Options

Nov 20. Fear moves from a creep to full trot

–For the seventh day in a row, FVZ and TYZ closed higher.  Ten year cash yield eased 1.6 bps to 305.6. From the middle of May going into the Italian elections there was also a big decline in yields, from 2.94% to 2.585%, a rapid fall of 35.5 bps.  Recent high has been 3.24%, so […]

Posted on November 20, 2018 at 5:14 am by alexmanzara · Permalink · Leave a comment
In: Eurodollar Options

Nov 19. And….it’s gone!

–Five year note plunged 6 bps to 289.2 Friday, capping a week which saw extreme volatility in energy markets, uncertainty regarding Brexit, and continued stock volatility.  ZH notes that a firm named ‘OptionSellers.com’ was blown up by the nat gas move.  Yet another premium seller that got caught in a black swan event, which seems […]

Posted on November 19, 2018 at 7:42 am by alexmanzara · Permalink · Leave a comment
In: Eurodollar Options

Nov 18. ‘Exactly’

You choose your battles. Whenever someone in our office asks what’s driving this market or that, one of my colleagues is fond of launching into his explanation, which invariably starts with this line: “I think the easiest way to think of it is to imagine two armies.  There is the bull army and bear army.  […]

Posted on November 18, 2018 at 7:05 pm by alexmanzara · Permalink · Leave a comment
In: Eurodollar Options

Nov 16. England center stage, but a rate cut by China could provide a shake-up

–Little net change in US rates yesterday despite some fairly large flows.  Tens fell less than half a bp to 311.6.  Eurodollar strip was weak in front but held gains in back, with the blue pack (4th year) closing +1.625, strongest part of the curve.  Going into November euro$ (and midcurve option) settlement, EDZ8 came […]

Posted on November 16, 2018 at 5:10 am by alexmanzara · Permalink · Leave a comment
In: Eurodollar Options

Nov 15. Powell and the Pound

–Treasuries are higher and stocks marginally better in the wake of Powell’s comments.  The drop in GBP on the resignation of cabinet member and Brexit negotiator Raab is likely also a contributor to the UST bid. (GBP testing the year’s low, now 1.2778 vs ytd low 1.2665).  No drama in Powell comments.  No indication of […]

Posted on November 15, 2018 at 5:11 am by alexmanzara · Permalink · Leave a comment
In: Eurodollar Options